Accounting ProcessQuestion 5024 of 84

If the errors are detected after preparing trial balance, then all the errors are rectified through suspense account. [June 2022, 2 Marks]

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Detailed Solution & Explanation

False: If the errors are deducted after preparing trial balance, then all the errors are not rectified through suspense account. Generally double sided errors are rectified without using suspense account.

About This Chapter: Accounting Process

Paper

Paper 1: Accounting

Weightage

25-30%

Key Topics

Journal, Ledger, Trial Balance, Cash Book, Rectification

This chapter covers Journal, Ledger, Trial Balance, Cash Book, Rectification and is part of Paper 1: Accounting in the CA Foundation exam.

View Official ICAI Syllabus

Exam Strategy Tip

This topic carries 25-30% weightage. Focus on understanding core concepts rather than memorizing.

Key Concepts to Understand

Trial Balance

A statement listing all ledger account balances at a specific date to verify the arithmetic accuracy of the double-entry bookkeeping system. It serves as the first step in preparing final accounts.

Suspense Account

A temporary ledger account used to record transactions when there is uncertainty about the correct classification, or to make the Trial Balance agree when errors are suspected. It is closed once the errors are located and rectified.

Related Comparison Tables

GDP vs GNP: National Income Accounting for CA Foundation

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