Question

Give one Word/Term or Phrase for each of the following statements.
Account to which difference in trial balance is transferred.

Answer 1

Suspense account

When the totals of the debit and credit balances of the trial balance do not match, then the difference is transferred to a temporary account known as Suspense A/c. This account is opened in order to avoid a delay in the preparation of financial statements. A Suspense A/c is used to rectify the one-sided or single-sided errors.