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 ___

Error Account

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Suspense Account

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Rectification Account

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None of the above

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Solution

The correct option is B
Suspense Account

If the errors cannot be located immediately and rectified, then the difference in trial balance is kept in a separate account called Suspense Account.

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Similar questions

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.

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

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

Q. Pending the location of errors in the books of accounts that affect the agreement of the Trial Balance, the difference disclosed is normally posted to ______________

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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 ___

The correct option is B Suspense Account If the errors cannot be located immediately and rectified, then the difference in trial balance is kept in a separate account called Suspense Account.

The correct option is B
Suspense Account

If the errors cannot be located immediately and rectified, then the difference in trial balance is kept in a separate account called Suspense Account.