Trial Balance and Rectification of Errors · Class 11 · CBSE · Commerce Accountancy
If a suspense account is opened to tally a trial balance, it will eventually be closed when:
Practice question from Trial Balance and Rectification of Errors (Class 11 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
medium · MCQ · Q-3A3718
If a suspense account is opened to tally a trial balance, it will eventually be closed when:
- A.All ledger balances are extracted
- B.All errors affecting the trial balance are located and rectifiedCorrect answer
- C.The final accounts are prepared
- D.The next accounting period begins
Solution
A suspense account is a temporary measure used to hold the difference in a trial balance. Once all errors causing the difference are located and rectified through journal entries, the suspense account balance reduces to zero and gets closed.
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