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.

Features of trial balance:
(i) Trial balance contains the balances of all ledger accounts.
(ii) It is prepared oil a specific date. That is why, the word, "as on ... " is used at the top.
(iii) When double entry system is followed, the totals of the debit and the credit columns of the trial balance must be equal.
(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, since some errors are not disclosed by the trial balance.

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.

A trial balance can be prepared in the following methods.
(i) Balance method: In this method, the balance of every ledger account either debit or credit, as the case may be, is recorded in the trial balance against the respective accounts. This method is widely used.
(ii) Total method: Under this method, the total amounts on the debit side of the ledger accounts and the total amounts on the credit side of the ledger accounts are ascertained and recorded in the trial balance. This is not commonly used.
(iii) Total and balance method: This method is a combination of both total method and balance method. Under this method, four columns are provided namely (a) total of debit side of the ledger accounts (b) total of credit side of the ledger accounts (c) debit balances of ledger accounts and (d) credit balances of ledger accounts. This method is not in practice.