How to find the balance of suspense account

Joined
Jun 19, 2015
Messages
21
Reaction score
0
Country
Pakistan
The answer to the question Ive attached is Nil but I dont know why?
 

Attachments

Triest123

VIP Member
Joined
Feb 12, 2012
Messages
269
Reaction score
51
Your trial balance (before adjustment) is not balance as the total amount on the debit side is higher than that of credit side by $1,100. As a result, a supense account is opened (which is on credit side) in order to balance the "trial balance"

After taking all the adjustment entries, the suspense account will be eliminated (i.e. all the errors are corrected).
 
Joined
Jun 19, 2015
Messages
21
Reaction score
0
Country
Pakistan
Thank you for your reply. The question is asking me to show my working .
I dont know how to do this to get zero!
 

Triest123

VIP Member
Joined
Feb 12, 2012
Messages
269
Reaction score
51
Suspense A/C
Balance b/f 1,100
Cash Sales omitted 2,000 Drawings understated 400
Cash balance understated 500
Balance c/f "0"
----------- --------
2,000 2,000
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Members online

Forum statistics

Threads
11,631
Messages
27,576
Members
21,371
Latest member
FrankArica

Latest Threads

Top