MP Board · Class 11 · Accountancy · Trial Balance and Rectification of ErrorsWhat type of balance does a Suspense Account show if the credit side of the Trial Balance exceeds the debit side?
Step-by-Step Solution
If the credit side of the Trial Balance exceeds the debit side, it means the debit total is short. Therefore, the Suspense Account will show a debit balance to make the trial balance agree.
Detailed Options Breakdown
Option : Credit balance
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Trial Balance and Rectification of Errors.
Option 1: Debit balance (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: Nil balance
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Trial Balance and Rectification of Errors.
Option 3: Either debit or credit balance
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.