Introduction to Suspense Account

Q.

What is suspense Account? Give one example with entries of suspense Account.

Q.

What is a suspense account? Is it necessary that a suspense account will balance off after rectification of the errors detected by the accountant? If not, then what happens to the balance still remaining in suspense account?

Q.

What type of account is a provision for doubtful debts?

Q.

For rectification of which of the following errors, suspense account is used?

1. Errors of Principle

2. Errors of Omission

3. Posting Error

4. Errors of Original Entry

Q.

Which account is temporarily opened to rectify the errors effecting the Trial Balance?

1. Asset Account

2. Capital Account

3. Suspense Account

4. Liability Account

Q. When the trial balance does not tally and the errors are yet to be detected, the usual practice is to place the difference in account.

1. asset
2. capital
3. suspense
4. liability

Q.

State whether the following statements are True or False-

1) A trial balance can agree in spite of certain errors.
2) Errors committed due to lack of accounting knowledge are errors of omission.
3) Trial balance is prepared from the balance of ledger accounts.
4) Rectification entries are passed in cash book.
5) Single sided errors affect only one account.
6) Suspense account is automatically closed after rectification of all errors.
7) Errors affecting the agreement of trial balance are called on side errors.
8) There is no need to open a suspense account if the trial balance agrees.
9) All the errors can be rectified only through suspense account.
10) Compensating errors affect the agreement of trial balance.

Q.

Errors that affect one account will affect the agreement of the Trail balance. If the errors cannot be located immediately and rectified, then the difference in trial balance is kept in a separate account called ___

1. Rectification Account

2. None of the above

3. Error Account

4. Suspense Account

Q.

What is meant by balancing and closing accounts?

Q. account is temporarily opened to rectify the errors affecting the trial balance.

1. Capital
2. Asset
3. Suspense
4. Liability

Q.

Which of the following is incorrect with regards to suspense account in rectification of errors?

1. Suspense account is not the result of any transaction

2. Suspense Account created is not shown in the Balance Sheet

3. During the next accounting year, after the errors are located and rectified, the Suspense Account will get closed

4. It merely represents the net effect of errors which still remain undetected

Q.

Is a suspense account an asset?

Q. Answer in one sentence only :-

State the meaning of suspense account.

Q. Answer the question.
What is Suspense Account?

Q. When total of debit column is higher than the credit column, the trial balance is closed by showing suspense account in which column?

1. Debit
2. Credit

Q. “Every syntax error is an exception but every exception cannot be a syntax error.” Justify the statement.

Q. Give one word/ term or phrase for each of the following statements.
Additional information provided after the completion of trial balance.

Q. When do we write suspense accounts in rectification of error?

Q. For the introduction to my essay, can I start a sentence with the word "imagine"?

Q. Out of the given alternatives, choose the one which best expresses the meaning of the italicized part of the sentence.
He is very discreet while deciding such matters.

1. obstinated
2. prudent
3. cunning
4. trustworthy

Q. Semantic errors can be detected

1. At compile time only
2. At run time only
3. Both at compile time and at run time
4. None of the above

Q. An error involving excess of debit in an account is rectified by corresponding debit or credit?

1. Debit
2. Credit

Q. Errors not affecting the trial balance will have an equal impact on both the debit and credit sides.

1. False
2. True

Q. For rectification of one sided error:

1. Relevant account entry in the ledger to be corrected
2. Both a and b
3. None of the above
4. Journal entry is to be corrected

Q. Which type of parameter is passed in a function for faster execution

1. call by value
2. call by string
3. call by address
4. call by name

Q. Drawings of goods costing 300 were not recorded in the books of account. If this error located after preparation of trial then which of the following rectification entry is correct?

1. Purchases A/c Dr. 300
   To Drawings A/c 300
2. Drawings A/c Dr. 300
   To Suspense A/c 300
3. Profit tr Loss Adj. A/c Dr. 300
   To Purchases A/c 300
4. Drawings A/c Dr. 300
   To Purchases A/c 300