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Question

In chapter rectification of errors- in practical question 4, the balance of the profit and loss adjustment account is transferred to the capital account but why haven't they calculated the balance of the suspense account and not transferred it to the capital account. Also, If the question is silent, do we have to calculate later the balance of both the profit and loss adjustment account and suspense account and transfer both the balances of the accounts to the capital account ?

Lisha · Answer

Listen when we rectify the error after an accounting yr the profit and loss adjustment account is opened instead of that nominal ac. And suspense ac open when there is single entry error

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1 answer

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