Interest in suspense represents the interest earned on a non performing asset. In terms of the accounting standards the interest earned on a non performing asset is not recognized as income- it is suspended and shown as off balance sheet . However, on the face of the balance- sheet it is included as a receivable.
Interest in suspense appears on a balance sheet. It shows that a company has money due to receiving a loan. But the person who borrowed the loan has not paid any money towards it.
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.
is the accounting method, where balance sheet of daughter in book value is assumed with the mother
The suspense account is a balance used to force the trial balance to agree. Once the errors have been located the respective amounts are debited or credited out of the suspense account until the balance is zero.
It's neither. The suspense account is a balance used to force the trial balance to agree. Once the errors have been located the respective amounts are debited or credited out of the suspense account until the balance is zero.
Net NPA = Gross NPA - (Balance in Interest Suspense account + DICGC/ECGC claims received and held pending adjustment + Part payment received and kept in suspense account +Total provisions held).
Trial balance a forced of balance?
In the Co's Balance Sheet: Interest on Debenture Accrued but not due is to be taken under the head Current Liabilities. Where as Interest on Debenture Accrued and Due is taken under the head Secured Loan.
A suspense account will be reported in the trial balance same order of your General Ledger or chart of accounts if there is a balance. However, most of the suspense accounts are nominal or clearing accounts meaning temporary and it will be closed every closing or at the end of the year.
Net NPA = Gross NPA - (Balance in Interest Suspense account + DICGC/ECGC claims received and held pending adjustment + Part payment received and kept in suspense account +Total provisions held)
Balance of Trade is the accounting of goods and service imported and exported. Balance of Payments is the accounting of money owed and loaned other nations.
Accounts receivable has a debt balance as normal accounting balance because it is an asset of company.