Search results
Certain intermediary/adjusting Heads of Account known as "Suspense Heads" are operated in Government Accounts to reflect transactions of receipt and payments which cannot be booked to a final Head of Account due to lack of information as to their nature, or for other reasons.
A suspense account is a general ledger account prepared in the following situations; 1. Transactions are unidentified or unclassified at the time of occurrence, or. 2. Differences arises between the total debit side & the credit side of the trial balance.
A suspense account could be located in any one of these sections of an organization’s chart of accounts: Asset. Liability. Revenue. Expense. Examples of Suspense Accounts. Assume that a company receives cash of $500 but cannot readily determine the reason why it received the $500.
Aug 29, 2023 · In investing, a suspense account is a type of brokerage account where a customer's proceeds from selling an investment may be recorded until the customer uses the money to invest in...
Oct 26, 2022 · A suspense account is a holding account found in the general ledger. Depending on the transaction in question, a suspense account can be an asset or liability. If it’s an asset in question, the suspense account is a current asset because it holds payments related to accounts receivable.
Jun 18, 2024 · Suspense Account Explained. A suspense account is a temporary account where entries with discrepancies and doubtful factors are parked. Toward the end of the accounting period, all discrepancies are sorted and accounted for to their permanent entities.
In accounting, suspense account is a general ledger account where ambiguous transactions are temporarily recorded when an appropriate classification cannot be determined at the time of initial accounting entry or trial balance reconciliation, pending transfer once the correct account is identified.
Jan 18, 2023 · Suspense accounts are temporarily classified as a balance sheet account, usually under the heading of current assets or current liabilities depending on the normal balance. Consequently at the end of each accounting period the business carries out a suspense account reconciliation.
Dec 7, 2023 · A suspense account is an account used to temporarily store transactions for which there is uncertainty about where they should be recorded.
Definition of Suspense Account. A suspense account is a general ledger account in which amounts are temporarily recorded. The suspense account is used because the appropriate general ledger account could not be determined at the time that the transaction was recorded.
