Suspense account corrects trial balance discrepancies from non-compensating errors

Steps:

• Recall suspense account temporarily balances trial balance when debits ≠ credits due to errors like casting or wrong-side posting.
• Analyze options: A, B, and D maintain equal totals; C disrupts equality.
• Confirm C involves posting expense to wrong-side account (interest typically credited), causing imbalance.
• Conclude correction of C uses suspense to adjust and balance.

Why C is correct:

• C is a posting error to the wrong side of a nominal account (debit to typically credited interest), creating a one-sided discrepancy per accounting rules, requiring suspense entry to rectify.

Why the others are wrong:

• A: Commission error in personal accounts; totals equal, direct journal correction.
• B: Principle error (asset as expense); totals equal, direct correction.
• D: Compensating casting errors (over/under by same amount); net zero effect, totals equal, no suspense.

Final answer: C