Suspense account

[Faiz Nez]

Guys please help me why the answer is A?? My own answer is B because Debit is suspense account and Credit should be debtor..plss help me

 

[Triest123]

Dr Sales return 400
Cr Debtor 40
Cr Suspense. 360 =>.in order to balance the trial balance

So the answer is A

 

[Faiz Nez]

Dr Sales return 400
Cr Debtor 40
Cr Suspense. 360 =>.in order to balance the trial balance

So the answer is A

wait then if u put the suspense on credit wouldn't it will be reduce the debtor???
i thought we need to increase the debtor because it was understated???

 

[Triest123]

The question require you to state the entry made by the company rather than making a correction entry.