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SingaporeAccountingQuick questions
The Trial Balance and Correction of Errors
Quick questions on The suspense account explained: O-Level Principles of Accounts
4short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is clearing the suspense account?Show answer
Each correction of a one-sided error includes an entry to the suspense account. As corrections are posted, the suspense balance falls. When every one-sided error is fixed, the suspense account totals to nil and is closed. If it does not clear, an error remains undiscovered.
What is q1?Show answer
State when a suspense account is opened. [1 mark]
What is q2?Show answer
The credit side of a trial balance is \90$ short. State the suspense balance and its side. [2 marks]
What is q3?Show answer
Explain why an error of omission is not corrected through the suspense account. [2 marks]
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