Question

Which of the following errors shall NOT be rectified by using a Suspense Account?

• A. Returns Outwards Books was cast Rs 10 short
• B. Rs 600 paid for purchase of Office Furniture was posted to the Purchase Account.
• C. A credit sale of Rs 76 was wrongly posted to the Sales Account as Rs 67.
• D. Payment of a Rs100 telephone bill correctly entered in the Cash Account but debited to the Telephone Account as Rs1,000.

Answer 1

The correct option is B

Rs 600 paid for purchase of Office Furniture was posted to the Purchase Account.

This error does not effect the trial, hence suspense account shall not be used to rectify this.