Accounting · Rectification of Errors
A trainee accountant at Tango Co prepared a trial balance that did not balance. The debit total was $43,800 and the credit total was $40,500. A suspense account was opened for the difference. Subsequent investigation revealed the following errors: 1. A payment of $1,800 for motor expenses was correctly entered in the cash book but was posted to the motor expenses account as $1,880. 2. Sales returns of $250 were correctly entered in the sales returns account, but the corresponding entry to receivables was omitted. 3. A receipt of $560 from a credit customer was correctly recorded in the cash book, but posted to the credit of the sales account instead of receivables. What is the correct balance on the suspense account after all these errors have been corrected?
- 1$3,330 Dr
- 2$3,330 Cr
- 3$2,970 Cr✓
- 4$2,970 Dr
Correct answer
$2,970 Cr
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