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Suspense account is used in the correction of

Accounts - Principles of Accounts
JAMB 2025

Suspense account is used in the correction of

  • A. errors that affect the agreement of a trial balance
  • B. errors that affect the accuracy of the net profit
  • C. errors that do not affect the agreement of a trial balance
  • D. all errors in the trial balance
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Correct Answer: Option A
Explanation

A suspense account is a temporary account used to record the difference when the trial balance does not balance. The difference is posted to the suspense account until the errors are found and corrected. It is used for correcting errors that affect the agreement of the trial balance.


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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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WAEC offline past questions - with all answers and explanations in one app - Download for free
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Post UTME Past Questions Agent
WAEC and NECO CBT App for Mobile Devices - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now
WAEC and NECO CBT Software for Computers and Laptops - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts