Accounting for IGCSE & O level - Accounting Procedures (Section 4 - No. 25)
What is the purpose of the suspense account?
To identify a purchase journal.
To identify errors in the trial balance.
To temporarily hold financial information.
To record the balance in the general ledger.
Explanation
Suspense accounts are used to temporarily hold the difference in the trial balance until the error causing the difference is found and corrected.
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