A difference of ₹1,440 in the Trial Balance is placed in Suspense Account. If it was caused by posting ₹800 as ₹80, in which account did the error occur?
Answer and explanation
Correct answer: D. An account where an amount was under-posted by ₹720
- Step 1: Posting ₹80 instead of ₹800 represents an under-posting of .
- Step 2: If this happened on both debit and credit sides in compensating manner, difference varies.
- Step 3: An under-posting of ₹720 explains a one-sided ledger error.
Answer
An account where an amount was under-posted by ₹720.
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