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

Capital

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Asset

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Suspense

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Liability

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Solution

The correct option is C Suspense
Suspense account is temporarily opened to rectify the errors affecting the trial balance.
Suspense account is also an account in the books of an organization in which items are entered temporarily before allocation to the correct or final account.

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Similar questions

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

Q. Rectify the following errors assuming:-
That no suspense account has been opened with difference in the trial balance.

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.

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 ___

Q. If there is an error in trial balance which is not affecting its total, will it affect any accounting procedure?

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

The correct option is C SuspenseSuspense account is temporarily opened to rectify the errors affecting the trial balance. Suspense account is also an account in the books of an organization in which items are entered temporarily before allocation to the correct or final account.

The correct option is C Suspense
Suspense account is temporarily opened to rectify the errors affecting the trial balance.
Suspense account is also an account in the books of an organization in which items are entered temporarily before allocation to the correct or final account.