When a trial balance does not tally, the difference is transferred to: MCQ with Answer and Explanation

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When a trial balance does not tally, the difference is transferred to:

A. Capital account

B. Suspense account

C. Drawings account

D. Profit and Loss account

Answer: Option B

Solution (By JKExamLibrary)

A suspense account is opened to temporarily park the difference.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Practice More Accountancy and Book Keeping Questions

Question #1 Report Error

The 'Ind AS' are applicable to companies in India in a phased manner based on:

A. Net worth and listing status

B. Number of employees

C. Age of company

D. Turnover

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Correct Answer: Option A

Explanation:
Ind AS applicability is determined by net worth, whether listed or unlisted, and other criteria.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2 Report Error

The rule 'Debit the receiver, Credit the giver' applies to:

A. Nominal accounts

B. Personal accounts

C. All accounts

D. Real accounts

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Correct Answer: Option B

Explanation:
This rule is for personal accounts.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3 Report Error

When starting a BRS with a debit balance as per the Cash Book, cheques issued but not yet presented for payment should be:

A. Divided

B. Ignored

C. Deducted

D. Added

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Correct Answer: Option D

Explanation:
These cheques decreased the cash book balance but not the pass book. To match the pass book, they must be added back.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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