Question 50
Correction of Errors and Suspense AccountThe debit side of a trial balance total is GH¢2,000 more than the credit side. Which of the following errors would account for the difference?
- A.A receipt of GH¢2,000 for rent has been omitted from the books.
- B.Carriage inwards of GH¢2,000 has been debited to carriage outwards account.
- C.Petty cash balance of GH¢1,000 has been omitted from the books.
- D.Discount received of GH¢1,000 has been debited to discount allowed account.
Show the answer and explanation
Answer: D (Discount received of GH¢1,000 has been debited to discount allowed account.)
Explanation
Debiting 1,000 instead of crediting it adds 1,000 to debits and removes 1,000 from credits: a 2,000 excess on the debit side.