JAMB Accounting 2014 Objective — Question 4

Question 4 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2014 Objective paper, with the correct answer and a full explanation.

A cheque of N5,000 paid to Suleiman had been correctly entered in the cash book but had not been entered in Suleiman's account. To correct this error, debit Suleiman's account and

A. credit cash account
B. credit bank account
C. credit suspense accountCorrect
D. credit purchases account

Explanation

The normal entry should have been Dr Sulaman a/c, Cr cash a/c. Since only one side was recorded, the debit balance is affected. To correct this mistake: Dr Sulaman A/c, Cr Suspense A/c.

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