Comments

  1. avatar says

    Hi John,

    With regards to Example 2, could it be that the Dr balance is the one that’s actually incorrect and inflated by $4957? Why have we said that the Cr Balance is the one that’s incorrect?

    It may be intuitive but i’m struggling to find a reason behind it…(without having to go through correcting all the errors first).

    Cheers!

    • Avatar of johnmoffat says

      There is no balance of 4957!!

      The trial balance should balance, and the suspense account is created to make it balance.

      To make it balance we need an extra credit.

      It is not a real account – as the lecture explains, it is just a way of keeping track of the amount of error that we have to find.

  2. avatar says

    Great lecture. However, from the example, sales account is $93,870. What then happens to this balance after the mistake has been discovered and corrected i.e additional $6,300 is credited to it? Will it be restated? Because the fake account (Suspense) does not seem to have any effect apart from the reconciliation of the balances.

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