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Correction of Errors (Suspense)
Attempt the ten questions below and then click 'Submit'.
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Q1. Equipment purchased on credit for €600 had been entered on the incorrect side of the vendor's account. To fix this we need to...
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10 points
Debit the Creditor's account by €600
Credit the Creditor's account by €600
Debit the Creditor's account by €1,200
Credit the Creditor's account by €1,200
Q2. The owner of a newsagent gave his own car to the business, to be used for deliveries. This was recorded in the business 'Vehicles' account, but nowhere else. It should be...
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10 points
Debited to the Capital Account
Credited to the Capital Account
Debited to the Drawings Account
Credited to the Drawings Account
Q3. A delivery van which had cost €4,200 and with a book value of €2,200 was sold for cash €1,500. The figure for Accumulated Depreciation of Delivery Vans in our Balance Sheet should...
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10 points
Increase by €2,000
Decrease by €2,000
Increase by €2,200
Decrease by €2,200
Q4. Insurance Due €500 was not entered in the books. We need to
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10 points
Add €500 to Insurance (Profit & Loss A/C) and add €500 to Insurance Due (Balance Sheet)
Subtract €500 from Insurance (Profit & Loss A/C) and add €500 to Insurance Due (Balance Sheet)
Add €500 to Insurance (Profit & Loss A/C) and subtract €500 from Insurance Due (Balance Sheet)
Subtract €500 from Insurance (Profit & Loss A/C) and subtract €500 from Insurance Due (Balance Sheet)
Q5. A private debt of €1,000 owed to the business owner had been offset in full settlement against a business debt of €1,000 owed by the business. If no entry had been made of this, what two accounts will we be updating?
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10 points
Drawings & Creditors
Drawings & Debtors
Capital & Creditors
Capital & Debtors
Q6. A payment of €650 was incorrectly recorded as a receipt of €560 in the Bank account. To correct the Bank account we should...
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10 points
Debit the account with €560
Credit the account with €560
Debit the account with €1,210
Credit the account with €1,210
Q7. The Suspense account shows entries totalling €210 on the debit side and €530 on the credit side. The 'original difference' is...
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10 points
A debit of €320
A credit of €320
A debit of €740
A credit of €740
Q8. A payment from the owner's personal bank account to cover staff wages, was correctly recorded in the Wages account but not entered in any other account. To correct this, it should be...
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10 points
Debited to the Bank Account
Debited to the Capital Account
Credited to the Bank Account
Credited to the Capital Account
Q9. The Debtors figure (including suspense) in the original Balance Sheet was €22,000. Our Suspense account shows a debit balance of €400. The updated Debtors figure in the corrected Balance Sheet will be...
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10 points
€22,000
€22,400
€21,600
€21,800
Q10. The business paid €750 to cover insurance for the owner's private dwelling. This was correctly recorded in the Drawings account but nowhere else. It should now be recorded in...
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10 points
The Buildings Account
The Bank Account
The Insurance Account
The Capital Account
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