Question

22.The utilities expense had been understated RM20. Which of the following journal is suitable to correct...

22.The utilities expense had been understated RM20. Which of the following journal is suitable to correct the error.

  • Debit suspense account RM 20, credit utilities expense account RM20
  • Debit utilities expense account RM 20, credit suspense account RM20
  • Debit utilities expense account RM 20, credit cash account RM20
  • Debit suspense account RM 20, credit cash account RM20

23.If the accounts clerk post the account to the same side, this is called as ____________

  • Error of commission
  • Error of original entry
  • Posting error
  • Error of ommission
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Homework Answers

Answer #1

Since the utilities expense is understated by RM 30, It means that we have to increase the balance of utilities expense by the same amount by debiting utilities expense. But the counter effect of error is not known to us, so untill it is known a suspense account will be created. So the entry will be debit utilities expense and credit suspense account.

So Option B is answer

Posting of account in the same side of ledger is a form of posting error.

So Option C is answer

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