Question 8
Correction of Errors and Suspense AccountThe medium of correcting errors whose differences are shown in the trial balance is by the use of
- A.debtors' account
- B.creditors' account
- C.suspense account
- D.ledger account.
Show the answer and explanation
Answer: C (suspense account)
Explanation
A difference in the trial balance is put in a suspense account until the errors are found and corrected.