I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

PART E: PREPARING A TRIAL BALANCE 

 

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2.3 Use of journal entries in examinations 

Occasionally an examination question might ask you to 'journalise' a transaction (ie select one of two, 

three or four journal entries), even though the transaction is perfectly normal and nothing to do with an 

error. This is just the examining team's way of finding out whether you know your debits and credits. For 

example: 

QUESTION 

Journal

 

A business sells $500 of goods on credit. What is the correct journal to reflect this transaction? 

A 

DEBIT sales $500, CREDIT trade receivables $500 

B 

DEBIT trade receivables $500, CREDIT sales $500 

ANSWER 

B DEBIT  Trade 

receivables 

$500 

 CREDIT Sales 

          $500 

 

No error has occurred here, just a normal credit sale of $500. By asking you to select a journal, the 

examining team can see that you understand the double entry bookkeeping.  

2.4 Suspense accounts