The bookkeeper of Farida Commercial Enterprise extracted the following ledger account balances at 31 December 2025:
| Account Title | Balance (₦) |
|---|---|
| Capital | 1,200,000 |
| Freehold Land | 800,000 |
| Motor Vehicles | 450,000 |
| Fixtures and Fittings | 200,000 |
| Purchases | 720,000 |
| Sales | 1,380,000 |
| Returns Inward | 35,000 |
| Returns Outward | 28,000 |
| Carriage Inward | 18,000 |
| Carriage Outward | 22,000 |
| Discount Allowed | 14,000 |
| Discount Received | 19,000 |
| Trade Debtors | 210,000 |
| Trade Creditors | 165,000 |
| Provision for Doubtful Debts | 15,000 |
| Bank Overdraft | 85,000 |
| General Expenses | 48,000 |
| Rent and Rates | 36,000 |
| Drawings | 55,000 |
When compiling the Trial Balance, the Cash at Bank account balance was completely omitted, causing a disagreement between total debits and total credits. A Suspense Account was opened for the difference. What is the value in Naira (₦) of the entry required in the Suspense Account to balance the Trial Balance?
Answer: 284000 ₦
Answer
The entry required in the Suspense Account to balance the Trial Balance is ₦284,000.
To find the initial Suspense Account balance, separate the extracted ledger balances into debit and credit columns. Summing the debit balances yields ₦2,608,000, while summing the credit balances yields ₦2,892,000. The shortfall on the debit side is ₦2,892,000 - ₦2,608,000 = ₦284,000, which is the exact amount placed in the Suspense Account to temporarily balance the Trial Balance.
Step-by-Step Solution
Key Concept
Trial balance extraction rules and determination of Suspense Account balances resulting from omitted account balances.