Answer Posted / 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 |
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