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WAEC Financial Accounting 2020 Question 35

Question 35

Correction of Errors and Suspense Account

A business extracted its trial balance and discovered that the total of credit side exceeded the total of the debit side. Pending further investigation, difference would be

  1. A.credited to Suspense Account
  2. B.debited to Suspense Account
  3. C.credited to Profit and Loss Account.
  4. D.debited to Profit and Loss Account.
Show the answer and explanation

Answer: B (debited to Suspense Account)

Explanation

The short debit side is made up by debiting a suspense account.