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GCE Financial Accounting 1989 Question 28

Question 28

Correction of Errors and Suspense Account

Pending the location of error, the difference disclosed in the Trial Balance is normally posted to

  1. A.an Adjustment Account
  2. B.a Control Account
  3. C.a Suspense Account
  4. D.a Profit and Loss Account
  5. E.a Trading Account.
Show the answer and explanation

Answer: C (a Suspense Account)

Explanation

A suspense account holds the trial balance difference until the errors are found and corrected.