HELP Suspence A/c June 2006 Past Paper

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:32AM in AAT student discussion
Hi,
Could any1 explain to be how to do 2.1 questions C & D.
I am so stuck and confused,as find suspence & journals hard to understand!!!

Many Thanks :shock:

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:HELP Suspence A/c June 2006 Past Paper

    Hi,

    C) Accrued Wages have been Cr Wages and Cr Accruals
    u cant have 2 Cr.
    Accrual should be: Dr Expense (Wages)
    Cr Accrual

    Therefore u need to Dr Wages £2,300 (£1,1500 x 2) which cancels out the Cr and Dr £2,300 Suspense as the earlier posting did not balance.

    D) Depreciation is an expense therefore DR £9,000 and u need to Cr the accumulated depreciation Equipment so as to bring the cost down in Balance Sheet.
    Dr Depreciation £9,000
    Cr Acc Depreciation £9,000.

    I hope I'm right and make some sense!!!

    I'm paniking a bit for the exams studying not going very well!! :?

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