WAEC Accounting 2020 Objective — Question 35
Question 35 of 50 from the West African Examinations Council (WAEC) Accounting 2020 Objective paper, with the correct answer and a full explanation.
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A business extracted its trial balance and discovered that the total of the credit side exceeded the total of the debit side. Pending further investigation, the difference would be
- A. credited to Suspense Account
- B. debited to Suspense AccountCorrect
- C. credited to Profit and Loss Account
- D. debited to Profit and Loss Account
Explanation
The suspense account is used to record the difference between the debit and credit of a trial balance pending investigation. Since the credit is higher than the debit, the debit side will be balanced with the difference and debited to suspense account, in accordance with double entry.
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