CSEET · Fundamentals of Accounting · Accounting Process
While preparing a trial balance, the accountant finds that the total of the debit side is Rs 7,25,000 and the credit side is Rs 7,40,000. A suspense account is opened. What is the entry in the suspense account?
The suspense account is debited with Rs 15,000, because the credit side of the trial balance exceeds the debit side by that amount. Adding the difference on the debit side makes both totals equal at Rs 7,40,000 until the errors are found and corrected.
- ADebit side Rs 15,000Correct
- BCredit side Rs 15,000
- CDebit side Rs 7,25,000
- DCredit side Rs 7,40,000
Explanation
Credit total exceeds debit total by Rs 7,40,000 - 7,25,000 = Rs 15,000. To make the totals agree, Rs 15,000 is added on the debit side as a suspense account balance. Placing it on the credit side would widen the gap to Rs 30,000.
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