Having trouble with a question: bookkeeping controls, correcting errors, knowledge check.

Daybook Registered Posts: 2 New contributor 🐸
The question is:

A business is trying to eliminate a £500 credit balance on its suspense account. The bookkeeper has just spotted that a cash sale for £450 was posted to the sales account as £540. The company is not VAT registered.

What will the balance on the suspense account be after this error has been corrected?

As far as I understand, the extra 90 should go on the debit side of the suspense account, leaving the suspense account at 410 credit.

However the answer shown is 590. Why?


  • crispy
    crispy Registered Posts: 466 Dedicated contributor 🦉

    To correct the error the journal would be:

    Dr Sales 90
    Cr Suspense 90

    Therefore the suspense A/c balance would be Cr 590

  • Daybook
    Daybook Registered Posts: 2 New contributor 🐸
    Thank you! Seems to have been a blind spot for me, as it seems obvious now.
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