PRC-1 · Chapter 8 · Question 22 of 100
Which of the following errors will require the use of a Suspense Account to correct?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Cash paid for rent Rs. 500 was debited to the rent account as Rs. 50
Explanation
Entering different amounts on the debit and credit sides of a transaction (Rs. 50 debit, Rs. 500 credit) creates an imbalance in the trial balance, thus requiring a suspense account.
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