NECO Book Keeping 2015 Objective — Question 8
Question 8 of 40 from the National Examinations Council (NECO) Book Keeping 2015 Objective paper, with the correct answer and a full explanation.
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When the sales day book is undercast, the entries to correct the error are: debit
- A. Sales Account; credit Suspense Account
- B. Suspense Account; credit Sales AccountCorrect
- C. Sales Account; credit Debtors Account
- D. Debtors Account; credit Sales Account
Explanation
When the sales day book total is undercast (too low), the Sales account credit total is understated. The correcting entry debits the Suspense account and credits the Sales account to increase it to the correct figure.
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