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    Question

    A book-keeper extracts a trial balance which fails to

    agree. He places the difference in a/an: 
    A Asset A/c Correct Answer Incorrect Answer
    B Expenses A/c Correct Answer Incorrect Answer
    C Revenue A/c Correct Answer Incorrect Answer
    D Suspense A/c Correct Answer Incorrect Answer

    Solution

    When a trial balance does not agree, the book-keeper temporarily records the difference in a Suspense Account until the errors causing the disagreement are found and corrected. • Asset A/c → Used for assets, not for trial balance differences • Expenses A/c → Used for expenses • Revenue A/c → Used for income • Suspense A/c → Used to hold unexplained differences in the trial balance

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