Rectification of Errors in the next Accounting Period
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.
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
Relevant account before TB
Suspense account after TB is prepared
P&L Adjustment - After P&L is prepared