unit 5 suspense account

meibakermeibaker Trusted RegularPosts: 481Registered
hi, there is one type of the error i am bit confused, recording two debits or two credits for a transaction?
Q:stationery expenses £48 have been debited to both the stationery account and bank account?
A: suspense 48
bank 48
suspense 48
bank 48
correction of error: payment by cheque debited in error to bank account
i know the bank has been entered to the wrong side, so using the suspense account to correct,and credit the bank, but why you need to use the suspense account and bank again?

Comments

  • ToffeemadblueToffeemadblue Well-Known Posts: 102Registered
    The first transaction simply restores the situation back to the starting point before the error was made. The second transaction is the correct entry which should have been made originally.
  • crispycrispy Trusted Regular SouthamptonPosts: 454Registered
    Hello,

    The original entry would have been: -

    Dr Stationery £ 48
    Dr Bank £ 48
    Cr Suspense £ 96

    To correct: -

    Dr Suspense £ 96
    Cr Bank £ 96

    This journal clears the suspense a/c, and now the correct amount has been paid from the bank (ie: 96 - 48 = £ 48 paid). Im pretty sure you wouldn't lose any marks for using 1 journal instead of 2 - has the same effect.
  • meibakermeibaker Trusted Regular Posts: 481Registered
    thanks very much!
Sign In or Register to comment.