Question

Share capital suspense account is open when
1. Balance sheet is not tallied
2. When divided is declared but not paid
3. When share are forfeited
4. When application money is received but balance sheet is prepared before allotment of shares
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Answer 1

Explanation:

The suspense account is a general ledger account that acts as a holding account until the error is discovered or the unknown transaction is identified. When working with the trial balance, you can open one suspense account to hold all of the discrepancies until you find them.