Question

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.

• A. Dr. $4,800$
• B. Cr. $4,800$
• C. Cr. $2,400$
• D. Dr. $2,400$

Answer 1

The correct option is A Dr. $4,800$

Amount of the trial balance difference which will be posted to trial balance will be RS-4,800. One for not debiting RS-2,400 as pre-paid insurance is an asset and 2nd for the wrong credit of RS-2,400.