Multiple choice

To which of the following accounts is the difference of total of both debit and credit sides of a trial balance is transferred?

  1. Difference account

  2. Trading account

  3. Miscellaneous account

  4. Suspense account
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

When a trial balance doesn't balance (debit and credit totals differ), the difference is placed in a Suspense account to make the books balance temporarily. This allows financial statements to be prepared while the error is being investigated. The Suspense account is a temporary placeholder until the specific error is identified and corrected.

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