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what is suspense account?
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Answer / h.r. sreepada bhagi
When information is not clear or complete to identify a
transaction with a particular account, it can be parked in
an account called 'Suspense Account'. Once the necessary
information is received, journal entry needs to be passed to
transfer the effect to the current account. All the
transactions in this account should be transferred to the
correct accounts before preparing the Final Accounts.
Suspense A/c is an account to park the transactions till
they are identified to the correct a/c.
| Is This Answer Correct ? | 21 Yes | 1 No |
a suspense account is an account used temporarily to carry
doubtful receipts and disbursements or discrepancies pending
their analysis and permanent classification.
It can be a repository for monetary transactions (cash
receipts, cash disbursements & journal entries) entered with
invalid account numbers. The account specified may not exist,
or it may be deleted/frozen. If one of these conditions
exist, the transaction should be directed to a suspense
account.
| Is This Answer Correct ? | 2 Yes | 1 No |
Answer / ashwini
the difference in trial balance is transferred to a newly opened temporary account which is closed later when the errors are located and rectified.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / srikar
when the trial balance not satisfied by the accounts create a
suspence account for that tempararily after rectifying the
accounts in ledger it will be cancelled
| Is This Answer Correct ? | 0 Yes | 1 No |
Answer / kalukuwa happy
its an account that opened when correcting errors(mistakes)
in the trial balance e.g wrong entry book of prime entries
and this could be errors of principl,complete
reversal,commission,etc
| Is This Answer Correct ? | 0 Yes | 2 No |
Which is known transaction is suspense account. for exp we
received money via wire transfer but unable to identified
who has sent money is called suspens and recorded in
suspense account as follows:
Bank Dr.
To suspense
| Is This Answer Correct ? | 0 Yes | 6 No |
Answer / periasamy
Hi,
When we make a trail balance a/c, Total debit and Total
crdit figures should be equal, if it is not there then we
have not posted the entries porperly and then we need to
find out the missed entries and post in it. When we are
unable to find out it, then we have to show the difference
figure as suspense account.
I think it can be right answer if i am not wrong. Your
comments are welcome
| Is This Answer Correct ? | 6 Yes | 14 No |
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