Suspense account is created to record all those transactions which have some information missing either of debit part of transaction or credit part of transaction until at later stage more clear information is available about transactions.
when debit and credit column is not match of bank account
payment in suspense to customers account as receivable account
Suspense account is created as a temporary account for balancing the trial balance.Errors in accounting are depicted through trial balance when it comes unbalanced.For temporary rectification the unknown balance amount is treated as suspense amt and it can either be debit(Expense) or credit(Income).The unknown balance amount will be set-off during identification of the error via reversal entries.
Nominal accounts are closed at the end of each accounting year. In that sense, surely Suspense Account is a Nominal Account.
1. In normal course of business or day to day working there are so many transections arrises of that nature under which one or more accounts are missing that may be debit account or credit account so to temporarily resolve these kind of transections instead of missing account information suspense account is used to temporarily balance the debit and credit side of transaction and latter as things clear these suspense accounts replaces with actual accounts.
Suspense account is created to record all those transactions which have some information missing either of debit part of transaction or credit part of transaction until at later stage more clear information is available about transactions.
when debit and credit column is not match of bank account
payment in suspense to customers account as receivable account
A suspense account is an account in the general ledger in which amounts are temporarily recorded. The suspense account is used because the proper account could not be determined at the time that the transaction was recorded. When the proper account is determined, the amount will be moved from the suspense account to the proper account.
A suspense account is an account in the general ledger in which amounts are temporarily recorded. The suspense account is used because the proper account could not be determined at the time that the transaction was recorded. When the proper account is determined, the amount will be moved from the suspense account to the proper account.
what is suspense account ? please give me answer in detail... what is suspense account ? please give me answer in detail... suspense is when you make people wait for something before they tell you what it is
Suspense account is created as a temporary account for balancing the trial balance.Errors in accounting are depicted through trial balance when it comes unbalanced.For temporary rectification the unknown balance amount is treated as suspense amt and it can either be debit(Expense) or credit(Income).The unknown balance amount will be set-off during identification of the error via reversal entries.
Suspense accounts are generally used to park funds whose status is not verified completely during a transaction. For example, if during a Fund Transfer, if the credit account holder's details are not verified the funds are credited temporally to a suspense account Sundry Accounts are used for miscellaneous purposes - Eg - To park admin related costs, additional charges not finalized etc
Nominal accounts are closed at the end of each accounting year. In that sense, surely Suspense Account is a Nominal Account.
37.5 hours 58 seconds
1314.62