Wages of Rs. 6,400 are posted to Wages Account as Rs. 4,600, while the Cash Account is credited correctly. Which entry rectifies the error?
Correct answer: A. Debit Wages Rs. 1,800 and credit Suspense Rs. 1,800
- A. Debit Wages Rs. 1,800 and credit Suspense Rs. 1,800
- B. Debit Suspense Rs. 1,800 and credit Wages Rs. 1,800
- C. Debit Wages Rs. 4,600 and credit Cash Rs. 4,600
- D. Debit Suspense Rs. 6,400 and credit Wages Rs. 6,400
Explanation
Wages is short-debited by Rs. 1,800, calculated as Rs. 6,400 less Rs. 4,600. Wages is therefore debited for the difference, and Suspense is credited because the debit side was previously short.
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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.
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