Accounting · Trial Balance and Rectification of Errors
A junior accountant at Sirius Co recorded a payment of $5,850 to modify a machine (making it 50% more productive, which qualifies as capital expenditure) by correctly crediting the bank account but posting the debit entry to a suspense account. What is the correct journal entry to clear the suspense account?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Dr Suspense $5,850; Cr Machine repairs $5,850
- 2Dr Non-current assets – cost $5,850; Cr Suspense $5,850✓
- 3Dr Suspense $5,850; Cr Non-current assets – cost $5,850
- 4Dr Machine repairs $5,850; Cr Suspense $5,850
Correct answer
Dr Non-current assets – cost $5,850; Cr Suspense $5,850
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