Question 14
Correction of Errors and Suspense AccountA difference between the debit and credit totals in a Trial Balance is placed in
- A.bank reconciliation statement
- B.profit and loss account
- C.suspense account
- D.appropriation account
Show the answer and explanation
Answer: C (suspense account)
Explanation
When a trial balance does not agree, the difference is put in a suspense account until the errors are found.