CBSE · Class 11 · Accountancy · Trial Balance and Rectification of ErrorsSuspense Account is opened when:
Step-by-Step Solution
A Suspense Account is opened temporarily when the Trial Balance does not tally due to one or more unidentified errors, in order to finalize the financial statements without delay.
Detailed Options Breakdown
Option : All accounts are closed
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Trial Balance and Rectification of Errors.
Option 1: Trial Balance fails to agree (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: Only principle errors are found
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Trial Balance and Rectification of Errors.
Option 3: Net profit is calculated
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Trial Balance and Rectification of Errors.
💡 Study Guide: This question tests core syllabus concepts from Trial Balance and Rectification of Errors. For formulas, key summaries, and mock exam reference guides, read the full Trial Balance and Rectification of Errors Revision Notes.