Commerce Exam > Commerce Questions > If there is excess debit in the trial balance...
Start Learning for Free
If there is excess debit in the trial balance the difference is posted to the
- a)Debit side of Suspense account
- b)Credit side of Suspense account
- c)Credit side of Ledger account
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
If there is excess debit in the trial balance the difference is posted...
Explanation:
When the total of debit balances in the trial balance exceeds the total of credit balances, this indicates that there is an error in the books of accounts. In such a scenario, a suspense account is opened to temporarily hold the difference until the error is located and corrected.
The excess debit balance is posted to the credit side of the suspense account. This is because the suspense account is a temporary holding account and is used to balance the books of accounts. The credit side of the suspense account represents the amount of the difference between the debit and credit balances in the trial balance.
The suspense account is used until the error is located and corrected. Once the error is found, the entries are made to correct the error and the suspense account is closed. The difference in the suspense account is then transferred to the appropriate accounts in the ledger.
In conclusion, when there is an excess debit balance in the trial balance, it is posted to the credit side of the suspense account. The suspense account is used to temporarily hold the difference until the error is located and corrected.
When the total of debit balances in the trial balance exceeds the total of credit balances, this indicates that there is an error in the books of accounts. In such a scenario, a suspense account is opened to temporarily hold the difference until the error is located and corrected.
The excess debit balance is posted to the credit side of the suspense account. This is because the suspense account is a temporary holding account and is used to balance the books of accounts. The credit side of the suspense account represents the amount of the difference between the debit and credit balances in the trial balance.
The suspense account is used until the error is located and corrected. Once the error is found, the entries are made to correct the error and the suspense account is closed. The difference in the suspense account is then transferred to the appropriate accounts in the ledger.
In conclusion, when there is an excess debit balance in the trial balance, it is posted to the credit side of the suspense account. The suspense account is used to temporarily hold the difference until the error is located and corrected.
Free Test
FREE
| Start Free Test |
Community Answer
If there is excess debit in the trial balance the difference is posted...
If there is excess debit in trial balance; For example: Debit balance = Rs.10 and Credit balance = Rs.8, then it means Debit balance is excess by Rs.2. So, to balance the Trial balance, suspense account will be opened where balance of Rs.2 will be shown on credit side for making the credit balance = Rs. 10.
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
Explore Courses for Commerce exam
|
|
Top Courses for CommerceView all
If there is excess debit in the trial balance the difference is posted to thea)Debit side of Suspense accountb)Credit side of Suspense accountc)Credit side of Ledger accountd)None of theseCorrect answer is option 'B'. Can you explain this answer?
Question Description
If there is excess debit in the trial balance the difference is posted to thea)Debit side of Suspense accountb)Credit side of Suspense accountc)Credit side of Ledger accountd)None of theseCorrect answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about If there is excess debit in the trial balance the difference is posted to thea)Debit side of Suspense accountb)Credit side of Suspense accountc)Credit side of Ledger accountd)None of theseCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If there is excess debit in the trial balance the difference is posted to thea)Debit side of Suspense accountb)Credit side of Suspense accountc)Credit side of Ledger accountd)None of theseCorrect answer is option 'B'. Can you explain this answer?.
If there is excess debit in the trial balance the difference is posted to thea)Debit side of Suspense accountb)Credit side of Suspense accountc)Credit side of Ledger accountd)None of theseCorrect answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about If there is excess debit in the trial balance the difference is posted to thea)Debit side of Suspense accountb)Credit side of Suspense accountc)Credit side of Ledger accountd)None of theseCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If there is excess debit in the trial balance the difference is posted to thea)Debit side of Suspense accountb)Credit side of Suspense accountc)Credit side of Ledger accountd)None of theseCorrect answer is option 'B'. Can you explain this answer?.
Solutions for If there is excess debit in the trial balance the difference is posted to thea)Debit side of Suspense accountb)Credit side of Suspense accountc)Credit side of Ledger accountd)None of theseCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of If there is excess debit in the trial balance the difference is posted to thea)Debit side of Suspense accountb)Credit side of Suspense accountc)Credit side of Ledger accountd)None of theseCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
If there is excess debit in the trial balance the difference is posted to thea)Debit side of Suspense accountb)Credit side of Suspense accountc)Credit side of Ledger accountd)None of theseCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for If there is excess debit in the trial balance the difference is posted to thea)Debit side of Suspense accountb)Credit side of Suspense accountc)Credit side of Ledger accountd)None of theseCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of If there is excess debit in the trial balance the difference is posted to thea)Debit side of Suspense accountb)Credit side of Suspense accountc)Credit side of Ledger accountd)None of theseCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice If there is excess debit in the trial balance the difference is posted to thea)Debit side of Suspense accountb)Credit side of Suspense accountc)Credit side of Ledger accountd)None of theseCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup