Question 7
Correction of Errors and Suspense AccountAdobaw extracted a trial balance on 31st December 2005 and realised that the total of debit balances exceeded the total of credit balance. Pending investigation the difference should be
- A.debited to suspense account
- B.credited to suspense account
- C.debited to asset account
- D.credited to asset account
Show the answer and explanation
Answer: B (credited to suspense account)
Explanation
The credit side is short, so the difference is credited to suspense.