Suspense accounts and errors

Materials

For this lesson students are required to have
     text (Principles of accounts for the Caribbean by Frank Wood and Sheila Robinson)
     tablet
     exercise book
     

Objectives

 At the end of the lesson the students should be able to:
 1. understand the reason for using a suspense account
 2. create a suspense account in order to balance the trial balance
3. correct errors using a suspense account

  Review 
 Take a couple of minutes and answer the following recap question and we will discuss the answers.



Introduction

Discussion on the when a suspense account is used and when it is used after viewing the video.




Development

Examine the errors that affects the trial balance agreement in the text.(page 327 - 330) studying the examples given and noting key points

Errors that affect the trial balance agreement

1.  incorrect addition in any account
2.  making an entry on only one side of the accounts
3. entering a different amount on the debit side from the amount on the credit side

Practice

Exercise 30.1  page 337 in text
students will volunteer to write answers on the board

Summary

Questions and answer discussion

In the comments section below each student should write their response to these questions

When is the suspense account used?
What type of errors are corrected with the suspense account?
How are errors that affect the trial balance corrected?

Homework

Exercises 30.3 and 30.5