PRC-1 · Chapter 8 · Question 79 of 100
Which of the following errors will create a balance in a suspense account?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Petty cash expenses of Rs. 500 were only credited to the bank account
Explanation
Entering a credit without a corresponding debit creates an imbalance in the trial balance, necessitating a suspense account to temporarily balance the books.
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