Accounting · Rectification of Errors and Adjustment Entries

Consider the following statements: Statement 1: A Suspense Account is always closed at the end of the year by transferring its balance to the Profit and Loss account to ensure the balance sheet is clean. Statement 2: Rectification of errors identified after the preparation of the trial balance but before the final accounts involves the use of the suspense account for all types of errors including errors of principle and errors of omission. Statement 3: Adjusting entries for outstanding expenses like salary or rent result in an increase in the total liabilities and an increase in the total expenses for the period in which the service was consumed. Which of the following statements is/are correct?