WAEC Financial Accounting 2010 Question 9

Question 9

Correction of Errors and Suspense Account

A Suspense Account is used to

  1. A.correct errors
  2. B.record errors detected until corrected
  3. C.prepare the balance sheet
  4. D.extract the trial balance
Show the answer and explanation

Answer: B (record errors detected until corrected)

Explanation

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