A debit balance of Rs. 7,000 in the Trial Balance is entered on the credit side of the trial balance. Which rectifying entry is required?
Correct answer: A. Debit Suspense Rs. 14,000 and credit Trial Balance Difference Rs. 14,000
- A. Debit Suspense Rs. 14,000 and credit Trial Balance Difference Rs. 14,000
- B. Debit Trial Balance Difference Rs. 7,000 and credit Suspense Rs. 7,000
- C. Debit Suspense Rs. 7,000 and credit Trial Balance Difference Rs. 7,000
- D. Debit the relevant account Rs. 7,000 and credit Suspense Rs. 7,000
Explanation
The debit balance should have increased the debit total by Rs. 7,000 but instead increased the credit total by Rs. 7,000. The total correction is therefore Rs. 14,000, debiting Suspense and crediting the affected credit-side total.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Correction of Errors and Suspense Accounts
Accounting errors are corrected by journal entries after identifying whether the mistake affects one account or both sides of double entry. Suspense accounts temporarily hold an unexplained trial balance difference and must be cleared, while errors of omission, commission, principle, original entry and reversal require different corrections.
Practise Correction of Errors and Suspense Accounts
34 free Correction of Errors and Suspense Accounts MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Correction of Errors and Suspense Accounts questions
A debit balance of Rs. 1,250 in the suspense account remains after all known trial balance errors have been corrected. What does this indicate?
An amount of Rs. 9,000 paid for repairs is entered in Repairs Account but is omitted from the Cash Account. Which type of error is this?
A cash purchase of office stationery for Rs. 1,800 is entered in Stationery Account as Rs. 8,100, and Cash Account is correctly credited. Which entry rectifies the error?
Cash sales of Rs. 6,000 are entered in the Sales Book instead of the Cash Book. What is the effect before correction?
Bank charges of Rs. 450 shown on the bank statement have not been entered in the business books. Which entry records the omission?
Under traditional manual bookkeeping, an error relating to a previous accounting period is discovered after the accounts for that period have been closed. Which account is normally used for its correction?