You’re preparing a trial balance A trial balance is the closing balance of an account that you calculate at the end of the accounting period. When debits and credits don’t match, hold the difference in a suspense account until you correct it. If the credits in the trial balance are lar...
When a trial balance was prepared, the closing inventory of $20,400 was omitted. To make the trial balance, a suspense account was opened. What was the balance on the suspense account? A.Credit $20,400 B.Debit $20,400 C.Debit $40,800...
What is the function of a suspense account? A、A device used to enable the production fo the financial statements, when required, despite the presence of errors. B、 A method of ensuring the trial balance will agree. C、 A way of focusing attention upon
What is trial balance? Learn about trial balance in accounting, features of trial balance, and how the preparation of trial balance helps in accounting.
When your trial balance is out of balance (i.e., thedebitsare larger than thecreditsor vice versa) then the difference is held in a suspense account until the imbalance is corrected. Credits larger than debits? Record the difference as a debit in the suspense account. Debits larger than cr...
There are certain errors that a trial balance will not detect such as posting on both sides to a wrong ledger account, transposing debit and credit entries in the general ledger and making two errors that cancel each other out. Once errors are detected, a suspense account is created. This ...
Describe when a prepaid account would be used. What is the use of a suspense account? Define or describe the following: Normal balance of an account. What is the difference between nominal accounts and real accounts? What is meant by the term service level in accounting?
Suspense account is a temporary account is created when there is a disagreement in the debit and credit column of the trial balance after carrying forward all ledger account balances and errors are not detected at the right time, then the trial balance is equalized by transferring the difference...
Trial Balance is a list of closing balances of ledger accounts on a certain date and is the first step towards the preparation of financial statements. It is usually prepared at the end of an accounting period to assist in the drafting of financial state
What is the function of a suspense account? A、A device used to enable the production fo the financial statements, when required, despite the presence of errors. B、A method of ensuring the trial balance will agree. C、A way of focusing attention upon the corrective action required to ensure...