Acca financial Accounting (FA) Study Text ac ca (FA)

What is the correcting journal entry? 

 

 

Dr Cr 

A Discount 

received 

$400 

 

 Suspense 

 

$400 

B Suspense 

$400 

 

 Discount 

received 

 

$400 

C Discount 

received 

$800 

 

 Suspense 

 

$800 

D Suspense 

$800 

 

 Discount 

received 

 

$800 

 

 

 

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Chapter 23 

KAPLAN PUBLISHING

 

479 

58  An entity, Y, purchased some plant on 1 January 20X0 for $38,000. The 

payment for the plant was correctly entered in the cash book but was 

entered on the debit side of plant repairs account. Y charges depreciation 

using the straight-line basis at 20% pa, with a proportionate charge in the 

year of acquisition and assuming no scrap value at the end of the life of 

the asset. 

How will Y’s profit for the year ended 31 March 20X0 be affected by 

the error? 

A Understated 

by 

$30,400 

B Understated 

by 

$36,100 

C Understated 

by 

$38,000 

D 

Overstated by $1,900 

59  The trial balance of Z failed to agree, the totals being: 

Debit  

$836,200 

Credit  

$824,700 

A suspense account was opened for the amount of the difference and the 

following errors were found and corrected: 

1 

Cash sales totalling $6,500 had been correctly entered in the cash 

book but were posted to the sales account in the nominal ledger as 

$5,600. 

2 

A cheque for $19,000 received from a customer was correctly 

entered in the cash book but was posted to the customer’s account 

as $9,100.