The following information is relevant for questions 9 and 10

A． company’s draft financial statements for 2005 showed a profit of $630,000. However, the trial balance did not agree,

and a suspense account appeared in the company’s draft balance sheet.

Subsequent checking revealed the following errors:(1) The cost of an item of plant $48,000 had been entered in the cash book and in the plant account as $4,800.

D．epreciation at the rate of 10% per year ($480) had been charged.(2) Bank charges of $440 appeared in the bank statement in December 2005 but had not been entered in the

company’s records.(3) One of the directors of the company paid $800 due to a supplier in the company’s payables ledger by a personal

cheque. The bookkeeper recorded a debit in the supplier’s ledger account but did not complete the double entry

for the transaction. (The company does not maintain a payables ledger control account).(4) The payments side of the cash book had been understated by $10,000.

9 Which of the above items would require an entry to the suspense account in correcting them?

A． All four items

B． 3 and 4 only

C． 2 and 3 only

D． 1, 2 and 4 only

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