LEDGER AND TRIAL BALANCE

 

TRIAL BALANCE

Suspense Account :

When Trial Balance does not agree, then first of all we try to locate the errors. Sometimes, inspite of the best efforts, all the errors are not located and the Trial Balance does not tally. Then in order to avoid delay in the preparation of final accounts, a new account is opened which is known "Suspense Account" Defference in Trial Balance is posted to this Acount.

Closing of Suspense A/c :

• The errors which led to the difference still remains to have to be located.
• These errors will be rectified through Suspense A/c (One sided errors) which will be explained in the topic Rectification of Errors.
• When all the errors are rectified, this Account closes down automatically. If the difference in Trial Balance persist, it is shown in the Balance Sheet.
  • Debit Balance of Suspense Account is shown in the Asset Side of the B/Sheet.
  • Credit Balance of Suspense Account is shown in the Liability Side of the Balance Sheet.

 

CBSE Accountancy Class XI ( By Mr. Aniruddh Maheshwari ) 
Email Id : [email protected]