Adobaw extracted a trial balance on 31st December 2005 and realized that the total of debit balance exceeded the total of credit balance. Pending investigat...

Adobaw extracted a trial balance on 31st December 2005 and realized that the total of debit balance exceeded the total of credit balance. Pending investigation the difference should be

Answer Details

When Adobaw extracted the trial balance and found that the total of debit balances exceeded the total of credit balances, there is likely an error or omission in the accounts. In this case, to ensure that the accounts still balance, the difference should be temporarily recorded in a suspense account until the error is identified and corrected. Therefore, the difference should be debited to a suspense account, which is a temporary account used to record such differences until they are resolved. Once the error is identified and corrected, the suspense account will be cleared by transferring the balance to the appropriate accounts.