Question

1. The totals of two columns of Trial Balance prepared by the accountant of a firm
do not agree. How can he equate the totals?​

Answer 1

sometimes, despite the accountants best efforts the trail balance may not match! so then the difference between credit & debit totals is transferred to an account called SUSPENSE ACCOUNT.

for example:

if credit total is 35,000 & debit total is 60,000 so difference between them is 25,000. so the highest amount will be recorded on both sides & at the end of credit side we note suspense account with 25,000.

Answer 2

The answer is given below.

Explanation:

When the total of the two columns of trial balance prepared by the accountant of a firm do not agree then it is temporarily adjusted by opening suspense account till the error is not found.

The suspense account is created as the correct account is not found. Oncce the correct account is found the suspense account should be closed.