Suspense Account: The errors which affect one account will affect the agreement of trial balance. Ifit is difficult to locate the error before preparing the final accounts, the difference in the trial balance is transferred to newly opened imaginary and temporary account called' Suspense Account'. It is prepared to avoid the delay in the preparation of final accounts. If the total debit balances of the trial balance exceeds the total credit balances, the difference is transferred to the credit side of the suspense account. On the other hand, if the total credit balances of the trial balances exceeds the total debit balances, the difference is transferred to the debit side of the suspense account.
When all the errors affecting the trial balance are located and rectified, the suspense account automatically gets closed.
Suspense account is continued in the books until the errors are located and rectified. Such balance will be shown in the balance sheet. The debit balance will be shown on the assets side and the credit balance will be shown on the liabilities side.

Need for preparing trial balance:
(i) Trial balance helps to check the arithmetical accuracy of entries made in the accounting records.
(ii) Trial balance serves as a lubricant for the smooth movement and completion of the accounting cycle.
(iii) Trial balance helps in discovering errors which may have been committed in the accounting records.

Trial balance is prepared with the following objectives:
(i) Test of arithmetical accuracy:
Trial Balance is a means by which the arithmetical accuracy of the book-keeping work is Checked.
(ii) Basis for preparing final accounts:
Financial statements, namely, trading and profit and loss account and balance sheet are prepared on the basis of summary of ledger balances obtained from the trial balance.
(iii) Location of Errors:
1) When the Trial balance does not tally, it is an indication that certain errors have occurred.
2) The errors may have occurred at one or more of the stages of the accounting process, namely, journalising or recording in subsidiary books, totalling subsidiary books, posting in ledger accounts, balancing the ledger accounts, carrying ledger account balances to the trial balance, totalling the trial balance columns, etc.
(iv) Summarised information of Ledger Accounts:
1) The summary of ledger accounts is shown in the trial balance.
2) Ledger accounts have to be seen only when details are required in respect of an account

Following are the features of trial balance:
(i) Trial balance contains the balances of all ledger accounts.
(ii) It is prepared on a specific date.
(iii) Trial balance helps to check the arithmetic accuracy of entries made in the books of accounts.
(iv) If there is a difference between the totals of debit column and credit column of the trial balance, it is an indication of errors being committed somewhere.
(v) If both the debit column and the credit column of the trial balance have the same total, it does not mean that there is no mistake in accounting.

Though the trial balance helps to ensure the arithmetical accuracy ofthe books of accounts, it is possible only when the accountant has not committed any error. As all the errors made are not disclosed by trial balance, it would not be regarded as a -conclusive proof of correctness of the books of accounts maintained.
(e.g.,) errors of complete omission, compensating errors, etc., will not affected the trial balance.

(i) After transferring all the ledger account balances, if the trial balance does not tally, steps must be taken to locate and rectify errors.
(ii) If the errors cannot be rectified, then the trial balance is tallied by transferring the difference between the total of debit balances and the total of credit balances to a temporary account called suspense account.

Trial Balance is a connecting link between the accounting records and the preparation of financial statements. The availability of a tallied trial balance is the first step in the preparation of financial statements, as it contains the balances of all the accounts.
All revenue and expenses account, which appear in the trial balance are transferred to the trading and profit and loss account and all liabilities, capital and assets accounts are transferred to the balance sheet.

Yes, trial balance helps in preparing the financial statements by making available the balances of all the accounts at one place.

(i) A trial balance is a statement containing the debit and credit balances of all Ledger Accounts on a particular date.
(ii) It is arranged in the form of debit and credit columns placed side by side and prepared with the object of checking the arithmetical accuracy of entries made in the books of accounts and to facilitate preparation of financial statements.