- 1 Marks
Question
A cheque of N5,000,000 paid to Alhaji Dalami had been correctly entered in the cash book but was omitted in Alhaji Dalami’s account. To correct this error, debit Alhaji Dalami’s account and credit
A. Cash account
B. Bank account
C. Suspense account
D. Purchases account
E. Control account
Answer
C
Explanation:
The correct option is C because the omission of the entry in Alhaji Dalami’s account creates an imbalance in the double-entry system, which requires a suspense account to correct.
- Tags: Bank Accounts, Cash Book, Error Correction
- Topic: Correction of errors
- Series: NOV 2022
- Uploader: Theophilus