Skip to content

CS Executive · Corporate Accounting and Financial Management · Introduction to Accounting

While preparing a trial balance, the total of the debit side was Rs 3,86,500 and the credit side was Rs 3,80,900. The difference was put to a suspense account. Later it was found that a sale of Rs 5,600 to Rohan was not posted to Rohan's account at all, though the Sales A/c was credited correctly. What happens to the suspense account on correcting this?

Suspense is credited with Rs 5,600 and eliminated. Debit total exceeded credit by Rs 5,600, so suspense carried a credit of that amount. The unposted debit to Rohan explains it, and the correction Rohan A/c Dr to Suspense A/c clears the suspense balance.

  1. ASuspense A/c is credited with Rs 5,600 and eliminatedCorrect
  2. BSuspense A/c is debited with Rs 5,600 and eliminated
  3. CSuspense A/c is left with a credit balance of Rs 5,600
  4. DSuspense A/c is left with a debit balance of Rs 11,200

Explanation

The debit side exceeds the credit side by Rs 5,600, so suspense was credited by Rs 5,600 to balance. The omitted debit to Rohan of Rs 5,600 explains this exactly. The correcting entry is Rohan A/c Dr 5,600 to Suspense A/c, which clears suspense. Debiting suspense would be the wrong direction.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to Accounting shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to AccountingFree diagnostic mock

More Introduction to Accounting questions