Question

When the trial balance extracted from the books of Keman Enterprises at the year-end failed to...

When the trial balance extracted from the books of Keman Enterprises at the year-end failed to balance, the difference was placed in a Suspense account. Identify the amount that would have been placed in suspense as a result of each of the following errors; GH₵ 218,400 paid to a supplier was posted to the supplier as GH₵ 214,800

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Answer #1

Trial balance is the summary of all balances in accounts. Total of all the debits in trial balance should be equal to total of all credits in trial balance.

In the above question, the actual amount paid to supplier is 218,400. But the amount posted to the supplier account is 214,800. So the difference of this will be the amount that is placed in the suspense account.

Difference = 218,400 - 214,800

Difference = 3,600.

Hence, 3,600 is the correct answer.

SUMMARY:

The amount that placed in the suspense account is 3,600.

Hence, 3,600 is the correct answer.

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