Which type of error is most likely to create a suspense account difference?
Correct answer: B. Posting only one side of a double entry
- A. Complete omission of a business transaction
- B. Posting only one side of a double entry
- C. Recording a capital item as a revenue item
- D. Making two equal and opposite errors
Explanation
Posting only one side records an unequal amount in the ledger, so the trial balance fails to agree. The other errors may leave the debit and credit totals equal.
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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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