Trial balance imbalance from wrong-side posting

Steps:

• Suspense account balances trial balance when debits and credits differ due to posting errors.
• Classify errors: wrong account/same side (no imbalance); wrong side (imbalance).
• Evaluate options: A and D use same side; B misclassifies to debit account (treated as same side); C reverses side.
• Select option causing imbalance, requiring suspense.

Why C is correct:

• Income (bank interest received) must be credited per double-entry rules; debiting expense account (bank interest paid) creates excess debits by twice the amount, so suspense is credited to force trial balance agreement.

Why the others are wrong:

• A: Wrong income account but correct credit side; totals match.
• B: Wrong account (expense for income) but correct debit side for chosen account; totals match.
• D: Wrong account (expense for asset) but correct debit side; totals match.

Final answer: C