Suspense new balance

Can anyone explain how to answer this question.
Thanks

Best Answer

  • AminoAlexAminoAlex Posts: 17
    Accepted Answer
    Tommy,

    Bank loan is a liability and therefore CR 4,600
    VAT owed is also a liability therefore CR 3,496

    Fixed assets are an asset therefore DR 2000
    Rent paid is an expense therefore DR 1896

    Take your original DR balances of 172,600 + 2000 + 1896 = 176,496
    Take your original CR balances 168,400 + 4600 + 3496 = 176,496

    All good!

    tommy998
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