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Pending the location of an error, the difference in the Trial Balance is posted to...

Accounts - Principles of Accounts
JAMB 2024

Pending the location of an error, the difference in the Trial Balance is posted to a __

  • A. control
  • B. profit and loss appropriation
  • C. profit and loss
  • D. suspense
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Correct Answer: Option D
Explanation

When a trial balance doesn't balance (meaning the total debits don't equal the total credits), there's an error somewhere in the accounting records. Until the error is identified and corrected, accountants use a suspense account to temporarily hold the difference.


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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts

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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
Post UTME Past Questions Agent
WAEC and NECO CBT Software for Computers and Laptops - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now
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