Question 17
Correction of Errors and Suspense AccountA suspense account is used for error of
- A.addition corrected in the ledger
- B.items that have not yet been located for lack of sufficient data
- C.double posting verified in the ledger
- D.omission detected in the ledger
- E.miscasting in the trial balance
Show the answer and explanation
Answer: B (items that have not yet been located for lack of sufficient data)
Explanation
The suspense account holds a difference until the errors causing it are found.