# CIE Accounting Paper-2: Specimen Questions 8 - 10 of 103

## Passage

Mr. Tendulkar’s trial balance showed a suspense A/C of £ 32600 on the debit side. On rechecking the books, the following errors were discovered:

(i) An amount of £ 10000 received from Mr. Ganguly was posted to the debit side of Mr. Ashwin as £ 12000.

(ii) Salary paid to driver £4000 was debited to his personal A/C as £2400

(iii) Drawings of £2000 was credited to sales A/C as £3200

(iv) An amount of £6000 accounting for depreciation on car was posted as £600

(v) Sale of an old bat £20000 was credited to sales A/C as £12000

## Question number: 8 (3 of 5 Based on Passage) Show Passage

Essay Question▾

### Describe in Detail

Does Mr. Tendulkar’s Trial balance tally after rectifying the above said errors If not what is done with the balance of suspense A/C?

### Explanation

No, Mr. Tendulkar’s trial balance does not tally even after the rectification of the discovered errors. There still exists a debit balance in the suspense A/C of £ 20400. This is because not all the errors have been detected. This debit amount will be carried forward to the next year and will be eliminated as and when other errors are identified.

 Date Particulars J. F Amount £ Date Particulars J. F Amount £ To Ashwin A/C 2000 By Balance B/D 32600 To Car A/C 5400 By Sales A/C 3200 To Sales A/C 8000 To Balance C/D 20400 35800 35800 By Balance B/D 20400

## Question number: 9 (4 of 5 Based on Passage) Show Passage

Essay Question▾

### Describe in Detail

State the basis on which Mr. Tendulkar classifies the above said errors?

### Explanation

Mr. Tendulkar classifies the above errors as follows:

(i) Error of Commission

(ii) Error of Omission (Partial)

(iii) Error of Principle

(iv) Error of Commission

(v) Error of Omission (Partial)

## Question number: 10 (5 of 5 Based on Passage) Show Passage

Short Answer Question▾

### Write in Short

What does Mr. Tendulkar mean by Suspense A/C?

### Explanation

In order to avoid the delay in the preparation of final statements such as the profit & loss A/C and the Balance sheet, the amount of difference in the trial balance is put into a temporary A/C called suspense A/C.

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