If the trial balance shows a short credit the suspense account will have a ________ balance.

debit

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zero

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credit

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none of these

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Solution

The correct option is C credit
Trial Balance is prepared by taking the balances of all ledger account. Trial balance is prepared to check the arithmetical accuracy. If the total of debit and credit are tallied, it is proved that the books are arithmetically accurate.
In case of any error, rectification entries are to be passed. One of the methods of rectification of error involves use of suspense account.
When the trial balance shows a short credit, suspense account will be used for the short amount to tally the trail balance and hence, it will have a credit balance to make the total equal.

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Similar questions

Q. If Trial Balance shows excess credit, suspense account will show a debit balance.

Q. Select the most appropriate alternatives from those given below and rewrite the sentence.

If the trial balance shows a short credit the suspense account will have a ________
a) debit
b) zero
c) credit
d) nil

Q. Rs. 2,400, being the prepaid portion of insurance, was brought forward from the previous year as a credit balance in the nominal account. Identify the amount of the trial balance difference which will be placed in a suspense account -

Q. Rs

2, 400

, being the pre-paid portions of insurance, was brought forward from the previous year as a credit balance in the nominal account. Identify the amount of the trial balance difference which will be placed in a suspense account.

State true or false:

1) A Trial balance is an account.
2) A Trial balance is helpful for preparation of final accounts.
3) A Trial balance is most important document.
4) A Trial balance may be prepared on any date.
5) In Trial balance opening stock is recorded in credit balance column.
6) Both sides total of an account are taken in Gross Trial Balance.
7) Purchase account always shows debit balance.
8) A Trial balance is a List of Ledger balances.
9) A Trial balance does not ensure accounting accuracy.
10) A Trial balance shows only arithmetical accuracy.

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