PRC-1 · Chapter 3 · Question 50 of 100
The initial trial balance of 'Nova Traders' fails to agree. The total of the debit column is Rs. 1,540,000, and the total of the credit column is Rs. 1,480,000. To force the trial balance to agree temporarily so draft financial statements can be prepared, what specific entry must the accountant make?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Credit a Suspense Account with Rs. 60,000.
Explanation
Because the debit side (1,540,000) is heavier than the credit side (1,480,000) by Rs. 60,000, a temporary suspense account is created and credited with Rs. 60,000 to mathematically balance the trial balance until the errors are found.
More Ledgers and Trial Balance MCQs
- Q52Which of the following accounts will normally present a debit balance in a trial balance?
- Q53If the bank account in the general ledger shows a credit balance brought down (Balance b/d), what does this signify?
- Q54The Trade Payables account has an opening credit balance of Rs. 66,450. During the period, purchases were Rs. 205,600, payments made were…
- Q55The Trade Receivables account has an opening debit balance of Rs. 46,652. During the period, sales were Rs. 245,000, cash received was Rs…
- Q56Which of the following ledgers typically contains the Owner's Capital account and the Drawings account?