Practice What Is A Suspense Account? (8.7.1) - Rectification of Errors
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What is a Suspense Account?

Practice - What is a Suspense Account?

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Practice Questions

Test your understanding with targeted questions

Question 1 Easy

What does a Suspense Account hold?

💡 Hint: Think about what happens when debits and credits don't match.

Question 2 Easy

When do accountants use Suspense Accounts?

💡 Hint: Consider a scenario where mismatch occurs.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What is the purpose of a Suspense Account?

To hold permanent errors
To temporarily hold discrepancies
To replace the trial balance

💡 Hint: Consider what happens in accounting when there is a difference.

Question 2

True or False: A Suspense Account can become permanent.

True
False

💡 Hint: Think about the term 'temporary'.

1 more question available

Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

If a company's trial balance shows discrepancies of ₹3,000 and ₹2,000, explain how you would handle the situation in your accounts.

💡 Hint: Consider reviewing all account entries to discover where adjustments are needed.

Challenge 2 Hard

Suppose accounting discrepancies were found, but the errors offset each other, showing no effect on the trial balance. How should they be treated?

💡 Hint: Think about how each entry affects financial reporting.

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