THE MEDIUM OF CORRECTING ERRORS WHOSE DIFFERENCES ARE SHOWN IN THE TRIAL BALANCE IS BY THE USE OF
January 18, 2024
A. debtors’ account
B. creditor’s account
C. suspense account ✓
D. ledger account
The answer to the question is: C. suspense account
When errors are discovered in the trial balance, a suspense account is used to correct the differences. The suspense account is a temporary account used to hold the discrepancy until it can be resolved. It allows for the continuation of the accounting process while discrepancies are investigated and corrected. Once the errors are identified and rectified, the balances in the suspense account are transferred to their correct accounts, ensuring that the trial balance ultimately balances.