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rafapak


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suspense account
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hi guys 

 

I have this exercise and I am stuck on it. I have journal entries given:

Suspense Dr 4500

Motor vehicles Cr 4500

 

and I am told that motor vehicles  account balance is Dr 2000.

They ask what new balance will be ? 

My thinking is that you can not make entry on credit side with 4500 cause you arrive at credit balance of 2500 and since Motor vehicle account is asset account you can never have credit balance on this account. Do you know what is the answer to my exercise and how you arrived at this answer ? 

Coursebooks answer is that new balance is Dr 6500 but this is only possible when journal entry is motor vehicles Dr 4500, suspense Cr 4500. So probably error in coursebook occured again. 



-- Edited by rafapak on Monday 20th of February 2017 06:43:34 PM

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VinceH


Expert

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Based on what you've said, your assessment of the situation is correct. It *sounds* like the question is incorrect.

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Vince M Hudd - Soft Rock Software

(I only came here looking for fellow apiarists...)
Cheshire


Master Book-keeper

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Agree, although as usual would much prefer to see the actual Q&A.

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
rafapak


Senior Member

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Posts: 396
Date:
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thanks guys for replies

I have problems with questions and answers. People say I shouldn't take pictures of pages included in coursebooks as this creates problems with ownership rights. Therefore it is impossible to present my problems that usually refer to something written in a coursebook.

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