Accounting for IGCSE & O level - Accounting Procedures (Section 27 - No. 11)

If a trial balance is out of balance because total debits exceed total credits, where would the difference be initially recorded?

Debit side of the suspense account

Credit side of the suspense account

Profit and Loss account

Balance sheet

Explanation

To balance the trial balance, the difference is recorded on the side that is lower. In this case, the credits are lower, therefore it is recorded there.

Accounting for IGCSE & O level - Accounting Procedures (Section 27 - No. 11)

Explanation

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