How to clear a suspense account
Each error that unbalanced the trial balance is corrected with one side in suspense. Clear the account to nil, one journal at a time.
Task 1One side goes to suspense3 questions
Brookfield's suspense account has a debit balance of £480. Nadia now finds the errors behind it.
For each error, ask what should have been posted and what was posted. The correction supplies what is missing. If the error unbalanced the trial balance, the other side of the correction goes to Suspense.
- Error 1: rent of £400 was credited to Bank, but never debited to Rent
- Error 2: a receipt of £520 was debited to Bank in full, but credited to Trade receivables as £250
Task 2Clearing the rest3 questions
Task 3Errors that leave suspense alone3 questions