04-11-2006, 04:45 PM
Hi Zahoor,
The suspense account would have been created after this entry...
Cash a/c 1000 (dr)
Sales a/c 100 (cr)
consider these are the only two accounts, if you prepare the trial balance now, the credit side will fall Rs 900 shorter...to make both sides equal you will open a Suspense A/C with Rs 900 Cr bal...
Now the rectifying entry comes i.e,
Suspense a/c 900 (dr)
Sales a/c 900 (cr)
this entry will make the balance in suspense a/c zero...
is it clear?...
The suspense account would have been created after this entry...
Cash a/c 1000 (dr)
Sales a/c 100 (cr)
consider these are the only two accounts, if you prepare the trial balance now, the credit side will fall Rs 900 shorter...to make both sides equal you will open a Suspense A/C with Rs 900 Cr bal...
Now the rectifying entry comes i.e,
Suspense a/c 900 (dr)
Sales a/c 900 (cr)
this entry will make the balance in suspense a/c zero...
is it clear?...
