A cash purchase of office stationery for Rs. 1,800 is entered in Stationery Account as Rs. 8,100, and Cash Account is correctly credited. Which entry rectifies the error?
Correct answer: A. Debit Suspense Rs. 6,300 and credit Stationery Rs. 6,300
- A. Debit Suspense Rs. 6,300 and credit Stationery Rs. 6,300
- B. Debit Stationery Rs. 6,300 and credit Suspense Rs. 6,300
- C. Debit Cash Rs. 6,300 and credit Stationery Rs. 6,300
- D. Debit Stationery Rs. 1,800 and credit Cash Rs. 1,800
Explanation
Stationery is over-debited by Rs. 6,300, so the excess debit is removed by crediting Stationery. Suspense receives the debit because the original one-sided overstatement affected the trial balance.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Correction of Errors and Suspense Accounts
Accounting errors are corrected by journal entries after identifying whether the mistake affects one account or both sides of double entry. Suspense accounts temporarily hold an unexplained trial balance difference and must be cleared, while errors of omission, commission, principle, original entry and reversal require different corrections.
Practise Correction of Errors and Suspense Accounts
34 free Correction of Errors and Suspense Accounts MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Correction of Errors and Suspense Accounts questions
A purchase of furniture for Rs. 20,000 is debited to Furniture Account and credited to the supplier's account, but the amount is entered in the books as Rs. 2,000 in both accounts. Which statement is correct?
A credit sale of Rs. 15,000 is recorded in the Sales Account as Rs. 15,000 but is posted to the customer's account as Rs. 1,500. What is the effect before correction?
A rent payment of Rs. 2,500 is posted to Rent Account as Rs. 5,200, while the Cash Account is correctly credited. Which entry corrects the error?
An amount of Rs. 9,000 paid for repairs is entered in Repairs Account but is omitted from the Cash Account. Which type of error is this?
A debit balance of Rs. 1,250 in the suspense account remains after all known trial balance errors have been corrected. What does this indicate?
A debit balance of Rs. 7,000 in the Trial Balance is entered on the credit side of the trial balance. Which rectifying entry is required?