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Question

Difference of totals of both debit and credit side of the trial balance is transferred to _________.

A
miscellaneous account
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B
difference account
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C
trading account
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D
suspense account
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Solution

The correct option is D suspense account
Accounting is based on the dual aspect concept. Whereas every business transaction affects two account. For every debit there will be a credit and vice-versa. In such situation trial balance must be tallied.

But due to some clerical error done while doing the accounting, there are chances that trial balance will not agree. In such case, the difference in trial balance is transferred to a temporary account named as "suspense a/c".

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