ACCA Applied Knowledge · Financial Accounting · Suspense accounts
A trial balance shows total debits of $482,300 and total credits of $480,900. The difference is posted to a suspense account. Which of the following would be the correct balance on the suspense account?
The suspense account has a credit balance of $1,400. Debits exceed credits by $482,300 less $480,900, so a $1,400 credit is needed in suspense to make the trial balance agree.
- ACredit $1,400Correct
- BDebit $1,400
- CCredit $2,800
- DDebit $2,800
Explanation
Debits exceed credits by $1,400 (482,300 - 480,900). To make the totals agree, a credit of $1,400 is needed in suspense. Debit $1,400 would widen the gap, and $2,800 doubles the difference wrongly.
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