Forums

Rectification of Errors in the next Accounting Period

Accountancy

Relevant Account, Suspense Account and Profit & loss Adjustment Accounts are used to Rectify the Errors. In what scenario (nature of transaction) we should choose profit & loss Adjustment Account or Suspense Account.


Siv Ram

Siv Ram

CA Inter

775

18-Sep-23 21:22

221

Answers (2)

P&l adjustment account can be used when there is any error disclosed after the b/s date. Suspense account can be used when after adjustment of errors, some of the errors arise then that type of errors tfr to Suspense account


Renu Madhav

Renu Madhav

CA Inter

16K+

18-Sep-23 23:32

Relevant account before TB Suspense account after TB is prepared P&L Adjustment - After P&L is prepared


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

19-Sep-23 16:37

MCQs Now