unit 5 suspense account

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meibaker
meibaker Registered Posts: 481 Dedicated contributor 🦉
in AAT Level 3 (Level 6 in Scotland)
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?

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  • Toffeemadblue
    Toffeemadblue Registered Posts: 102 Dedicated contributor 🦉
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    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.
  • crispy
    crispy Registered Posts: 466 Dedicated contributor 🦉
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    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.
  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
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    thanks very much!

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