Accounting for IGCSE & O level - Accounting Procedures (Section 14 - No. 46)
What is the primary purpose of a suspense account when correcting errors in a trial balance?
To permanently record the corrections.
To temporarily hold the difference until the error is found.
To increase the credit balance.
To decrease the debit balance.
Explanation
A suspense account is used to temporarily hold the difference in a trial balance until the error is discovered and corrected.
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