Multiple choice

Suspense account can be used to rectify

  1. one-sided errors

  2. two-sided errors

  3. both (1) and (2)

  4. none of these

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

 Suspense account can be used to rectify, only the one-sided error, not the two-sided error.By only-one sided errors, the Trial Balance does not tally. These errors are rectified by passing their double-entry, in the debit or credit side, of the suspense account. For example, the total of Purchase Book is undercasted by Rs 200. This is an one-sided error, as it is effecting only the purchase account. If a suspense account is opened, we would make the entry  |||| |---|---|---| | Purchase A/c             Dr|200| | |  To Suspense A/c | |200| | | | |  

Keep practicing — related questions