Trial Balance and Rectification of Errors

are identified, the amounts are transferred from suspense account to the relevant accounts thereby closing the suspense account. Thus, suspense account is not placed in any particular category of accounts and is just a temporary phenomenon . While rectifying one-sided errors using suspense account, the following steps are taken: Identify the account affected due to error. (ii) Ascertain the amount of excess debit/credit or short debit/credit in the affected account.

(iii) If the error has resulted in excess debit or short credit in the affected account, credit the account with the amount of excess debit or short credit. If the error has resulted in excess credit or short debit in the affected account, debit the account with the amount of excess credit or short debit. Complete the journal entry by debiting or crediting the suspense account as another account affected otherwise. We will now discuss the process of rectification using suspense account: Credit sales to Mohan Rs.

, were not posted to his account. This is