- This topic has 4 replies, 2 voices, and was last updated 10 years ago by
.
- Posts
Q’s trial balance failed to agree and a suspense account was opened for the difference.
The petty cash book balance of $500 had been omitted from the trial balance
Which of the following errors will require an entry to the suspense account to correct them?
I know the above would require an entry.. but My sir told me that books prime entry doesn’t affect suspense account
can u explain me sir?
Plus if anything is omitted from the accounting records or trial balance does that affect suspense?
And if anything omitted from the accounting records does that affect trial balance not to balance
If a balance has been omitted from the trial balance then the trial balance will not balance!!! So it needs an entry in the suspense account.
Errors within a book of prime entry will not stop the trial balance balancing. But leaving out a balance is not an error within the book.
Errors in the accounting entries will affect the suspense account if the debit does not equal the credit.
You really should watch the lecture on this.
Sir, but then error of omission does that affect trial balance not to balance ?
“If a balance has been omitted from the trial balance then the trial balance will not balance”
this is the statement what u told me….
- You must be logged in to reply to this topic.