Errors And Suspension Account
Advance level Accounting
Date : 19/03/2016
After completing the double entries we close the ledger accounts and day books and then listings all of the balances in a sheet in order to find or confirm that our entries all went correct. The total of debit and credit side of the trial balance should be equal and that give you confirmation of your work.
However you can`t celebrate that as there are some errors will not disclose in tallying your trial balance. Therefore you will tally the trial balance with that errors.
They are 1.Errors of omissions
2.Errors of commission
3.Errors of principles
5.Errors of reversal
When some errors occurred while you processes your trial balance you will not be able to tally debit side with credit side. Then temporarily you put suspense account for that amount and balance the TB.
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