Suspense Account

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Suspense Account

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Option : Correct Option. Solution: Suspense Account :  When trial balance does not tally, the difference is put to an account named as Suspense A/ c. Difference is: - debited (if debit side of trial balance is short) or - credited (if credit side of trial balance is short) to Suspense A/ c  Thus with the help of suspense A/ c trial balance is artificially tallied.  While passing rectification entry for one sided errors, the one effect Dr. or Cr. will go into the A/ c in which mistake is committed & the other effect will be given to Suspense A/ c.  When all such one sided errors are rectified the Suspense A/ c will become Nil.  While rectifying double sided errors, suspense account will not get affected.

Suspense Account

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