These are ACCA F3 (FA/FFA) Financial Accounting MCQs for Part-E of the Syllabus “Preparing a trial balance”.

These multiple-choice questions (MCQs) are designed to help ACCA F3 students to better understand the exam format. We aim to instill in students the habit of practicing online for their CBE exams. By doing so, students can reduce exam stress and prepare more effectively.

Please note:

Students should not attempt these MCQs until they have finished the entire chapter.
All questions are compulsory, so please do not skip any.

We hope that these MCQs will be a valuable resource for students preparing for the ACCA F3 (FA/FFA) exam.

INFORMATION ABOUT THESE CBE MCQs Test/Quiz

Course:	ACCA – Associations of Chartered Certified Accountants
Fundamental Level:	Knowledge, FIA – Foundation in Accounting
Subject:	Financial Accounting
Paper:	F3 – FA/FFA
Chapter:	Suspense accounts
Chapter Number:	18 of the Practice and Exam Kit
Syllabus Area:	E – “Preparing a trial balance”
Questions Type:	CBE MCQs
Exam Section:	Section A

Syllabus Area

These Multiple Choice Questions (MCQs) cover the Syllabus Area Part E of the Syllabus; “Preparing a trial balance” of ACCA F3 (FA/FFA) Financial Accounting Module.

Time

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Students will get their F3 CBE MCQs Test results after they finish the entire test. They will also be able to see the correct and incorrect answers, as well as explanations for the incorrect questions.

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Multiple choice: Choose all those answers which seem correct/ or incorrect to you, as per the requirement of the question. Keep your eye on the wording “( select all those which are correct/ or incorrect)“.
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F3 - Chapter 18 - Part A - MCQs

Course: ACCA - FIA
Subject: F3 (FA/FFA) Financial Accounting
Syllabus Area: E - Preparing a trial balance
Chapter in Kit: 18 - Suspense accounts
Exam Section: Section A
Questions type: MCQs
Time: No Time Limit

INSTRUCTIONS

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1 / 13

A company's trial balance failed to agree, the out of balance difference of $25,000 being posted to a suspense account.

Subsequent investigation revealed the difference was due to one side of an entry to record the purchase of machinery for $25,000, by cheque, failing to post to the plant and machinery account.

Which of the following journal entries would correct the error?

DEBIT plant and machinery $25,000, CREDIT suspense account $25,000

DEBIT plant and machinery $25,000, CREDIT bank current account $25,000

DEBIT bank current account $25,000, CREDIT suspense account $25,000

DEBIT suspense account $25,000, CREDIT plant and machinery $25,000

2 / 13

A trial balance extracted from a sole trader's records failed to agree, and a suspense account was opened for the difference.

Which of the following errors would require an entry in the suspense account in correcting them?

Sales returns were mistakenly debited to the purchases returns account.
Cash received from the sale of a non-current asset was correctly entered in the cash book but was debited to the disposal account.
The balance on the rent account was omitted from the trial balance.
Goods taken from inventory by the proprietor had been recorded by crediting drawings account and debiting purchases account.

2 and 3 only

2 and 4 only

All four items

1 and 3 only

3 / 13

M Co's trial balance does not agree and therefore a suspense account with a debit balance of $3,000 has been opened.

Which of the following errors could explain this difference?

Equipment repairs of $3,000 have been incorrectly capitalised as part of plant and equipment.

The interest received account of $1,500 has been omitted from the trial balance.

A $1,500 bank balance has been shown in the trial balance as an overdraft of $1,500.

A receipt of $3,000 from a credit customer has been credited to the payables control account instead of the receivables control account.

4 / 13

A suspense account shows a credit balance of $130.

Which of the following could be due to?

Recording a purchase of $130 twice in the purchases account

Recording an electricity bill paid of $65 by debiting the bank account and crediting the electricity account

Omitting a sale of $130 from the sales ledger

Failing to write off a bad debt of $130

5 / 13

The trial balance of Z failed to agree, the totals being:

DEBIT $836,200
CREDIT $819,700

A suspense account was opened for the amount of the difference and the following errors were found and corrected:

The total of the cash discount received column in the cash book had not been posted to the discount received The figure for discounts received was $5,100.
A cheque for $19,000 received from a customer was correctly entered in the cash book but was posted to the control account as $9,100.

What will the remaining balance be on the suspense AFTER the correction of these errors?

$_______ credit

6 / 13

When Q's trial balance failed to agree, a suspense account was opened for the difference. The trial balance totals were:

DEBIT $864,390
CREDIT $860,930

The company does not have control accounts for its receivables and payables ledgers.

The following errors were found:

In recording an issue of shares at par, cash received of $333,000 was credited to the ordinary share capital account as $330,000.
Cash $2,800 paid for plant repairs was correctly accounted for in the cash book but was credited to the plant asset account.
The petty cash book balance $500 had been omitted from the trial balance.
A cheque for $78,400 paid for the purchase of a motor car was debited to the motor vehicles account as $87,400.
A contra between the receivables ledger and the payables ledger for $1,200 which should have been credited in the receivables ledger and debited in the payables ledger was actually debited in the receivables ledger and credited in the payables ledger.

What will the balance on the suspense account be after making the necessary entries to correct the errors affecting the suspense account?

$2,440 DEBIT

$3,440 DEBIT

$13,640 DEBIT

$15,560 CREDIT

7 / 13

A company's trial balance totals were:

DEBIT $387,642
CREDIT $379,511

A suspense account was opened for the difference.

Which one of the following errors would have the effect of reducing the difference when corrected?

The petty cash balance of $500 has been omitted from the trial balance.

$4,000 received for rent of part of the office has been correctly recorded in the cash book and debited to rent account.

An invoice for Mr A Smith for $400 has been posted to the account of Mrs B Smith in error.

$3,000 paid for repairs to plant has been debited to the plant asset account.

8 / 13

The suspense account shows a debit balance of $100.

What could this balance be due to?

Undercasting the purchases account by $100

Entering $50 received from A Turner on the debit side of A Turner's account

Undercasting the sales day book by $100

Entering $50 received from A Turner on the credit side of A Turner's account

9 / 13

A company has a suspense account balance in its trial balance of $560 credit.

It was discovered that discounts allowed of $700 have been debited to, instead of credited to, the receivables control account.

What is the remaining balance on the suspense account after this error has been adjusted for?

$840 DEBIT

$1,260 CREDIT

$1,960 CREDIT

$140 DEBIT

10 / 13

The trial balance of C, a limited liability company, did not agree, and a suspense account was opened for the Checking in the bookkeeping system revealed a number of errors.

Which TWO of the following errors would require an entry to the suspense account as part of the process of correcting them?

Sales returns had been debited in error to the purchases returns account.

$9,500 paid for rent was debited to the rent account as $5,900.

No entries have been made to record a cash sale of $100.

$4,600 paid for motor van repairs was correctly treated in the cash book but was credited to motor vehicles asset account.

$360 received from B, a customer, was credited in error to the account of BB.

11 / 13

A suspense account was opened when a trial balance failed to The following errors were later discovered.

A gas bill of $420 had been recorded in the gas account as $240.
A sales invoice to a customer for $50 had been credited to accounts receivable.
Interest received of $70 had been entered in the bank account only.

What was the original balance on the suspense account?

DEBIT $210

DEBIT $160

CREDIT $160

CREDIT $210

12 / 13

When Q's trial balance failed to agree, a suspense account was opened for the difference. The trial balance totals were:

DEBIT $864,390
CREDIT $860,930

The company does not have control accounts for its receivables and payables ledgers.

The following errors were found:

In recording an issue of shares at par, cash received of $333,000 was credited to the ordinary share capital account as $330,000.
Cash $2,800 paid for plant repairs was correctly accounted for in the cash book but was credited to the plant asset account.
The petty cash book balance $500 had been omitted from the trial balance.
A cheque for $78,400 paid for the purchase of a motor car was debited to the motor vehicles account as $87,400.
A contra between the receivables ledger and the payables ledger for $1,200 which should have been credited in the receivables ledger and debited in the payables ledger was actually debited in the receivables ledger and credited in the payables ledger.

Which of these errors will require an entry to the suspense account to correct them?

3 and 5 only

1, 2, 3 and 4 only

2, 4 and 5 only

All five items

13 / 13

On 1 October 20X6, N Co had 400,000 25c ordinary shares in issue. On 1 January 20X7 there was a rights issue of one for five at $1.50. The entry in the share premium account was omitted in error and as a result the trial balance at 30 September 20X7 did not agree.

What balance would have been entered in the suspense account when it was opened?

$100,000 DEBIT

$100,000 CREDIT

$400,000 CREDIT

$400,000 DEBIT

Your score is

F3 (FA/FFA) – Chapter 18 – PART E – CBE MCQs – ACCA