Question

Can anyone tell me how to remove the debit balance of Rs. 50,000 in Trial Balance ????

I've tried adding and subtracting the transactions... But all in vain... Please help me as soon as possible...

Answer 1

Suspense Account :-

When Trial Balance does not agree, then first of all we try to locate the errors. Sometimes, in spite of the best efforts, all the errors are not located and the Trial Balance does not tally. Then in order to avoid delay in the preparation of final accounts, a new account is opened which is known “Suspense Account”.

Difference in Trial Balance is posted to this Account.

1. If there is Excess Debit in the
Trial Balance
Difference is posted to the Credit side
of Suspense A/c

2. If there is Excess Credit in the
Trial Balance
Difference is posted to the Debit side
of Suspense Account.