Accounting for IGCSE & O level - Accounting Procedures (Section 18 - No. 25)
Bradley's trial balance did not balance, so a suspense account was opened. After investigation, Bradley made an entry to correct an earlier error. The error was originally an undercast by $100. What should be done to the suspense account?
Debit the suspense account by $100.
Credit the suspense account by $100.
The account has already been zeroed, leave it.
The trial balance cannot be fixed if the account undercast.
Explanation
The suspense account is used as a temporary holding place for the difference, which here is $100. The undercast means there were not enough credits on the books, therefore, we should increase the credit, which will equal the debits and cancel the balance.
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