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The suspense account which comes under trial balance is marked in :

  • A.Balance Sheet
  • B.Trading account
  • C.Income statement
  • D.Profit and loss statement

Answer: A

The suspense account is shown in the Balance Sheet.

When a trial balance does not agree and the errors cannot be found at once, the difference is put into a suspense account so that the books can be closed. If the errors are still not located when the final accounts are prepared, the suspense balance appears in the balance sheet: a debit balance on the assets side, a credit balance on the liabilities side.

It is not an income or expense, so it does not go into the trading account, the income statement or the profit and loss statement.

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