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3 A suspense account was opened when a trial balance failed to agree. The following errors were later discovered: Error 1- A gas bill of 420 had been...

Can you help me to answer and explain this suspense account and statement of financial position MCQ questions, thank you!1556771899(1).png1556772069(1).png

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1.3 A suspense account was opened when a trial balance failed to agree. The
following errors were later discovered: Error
1- A gas bill of £420 had been recorded in the Gas account as £240 2- Discount of £50 given to a customer had been credited to Discounts Received. 3- Interest received of £T0 had been entered in the bank account only. The original balance on the suspense account was:
A: debit £210
El: credit £210
0: debit £100
0: credit £100

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1. 7
The closing inventory of * amounted to $1 16. 400 excluding the following two
inventory lines :"
400 items which had cost $4 each . All were sold after the statement of
financial position sheet date for $3 each , with selling expenses of $ZOO
for the batch .
2
200 different items which had cost $30 each . These items were found
to be defective at the statement of financial position date . Rectification
work after the balance sheet date amounted to $1 , 200 , after which they
were sold for $35 each , with selling expenses totaling $300.
Which of the following total figures should appear in the statement of financial
position of X for inventory ?
I'D
$12 2, 300
B :
$121. 900
$1 2 2. 900
D
$1 23. 300

Top Answer

1.3 Correct option is  B:... View the full answer

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