The Irial balance at 31 st December 2014 showed a difference of 144000. being a shortage on the credit side. \(A\) suspense account is opened and the difference of \(144.000\) is entered on the credit side of the account On 3rd January 2015. it was found that the sales account was under cast by \(144.000\). To correct the error ____________
A. debit suspense account; credit sales account B. debit sales account: credit suspense account C. debit undercast account; credit sales account D. debit suspense account; credit undercast account
Correct Answer: A
Explanation
The undercoat figure will need to be added back to rules by crediting sales account. The corresponding entry will be in suspense account.
