Suspense account means,at the time of preparing trail
balance the debit and credit balances are not equal,we are
not able to equal the two things because of some accounting
errors,at that time we create a suspense account and put the
balance in that.
In another terms in business some sort of expenses and
revenues don't have specific ledger, at the time those
expenses and revenues show in the separate account,its
called as suspense account.
Suspense account is usually maintained when there occurs and
diffrence in the debit and credited side of trail balance.
So Suspense account is maintained to adjust the difference
in trial balance. It may occur due to the following:
error of ommission
error of commission
error of principle
The main purpose of this account is to show the ture and
fair picture of balancesheet.
it is a temporary account prepared in the trail balance for
time being in order to facilitate the preparation of
balance sheet.it may occur due to accounting errors such as
error in principle,ommission,commission etc..
the purpose of preparing trail balance to know the
arithemetical accuracy of an organisation at a given period
by posting the ledger balances,side by side. Due to some
errors made by the clerical staff dr N cr balances of trail
balance would not tally. To overcome this one temperary a/c
is prepared and the difference bal should be delivered to
that a/c.It enables the org to move forward to prepare other
a/c s like trading and p&l a/s and balance sheet to know the
financial position of the co.After the errors have been
rectified then the bal in susprense should be nullified.
Suspense Account is created to park the un-identified
entries. Example. The invoice number is quoted by customer
while making the payment. It will parked in the suspense
account untill we investigate and identify the invoice
number of the particular transaction.
Suspence A/c is a temperory account which is created to
prevent wrong entry or posting the same in ledger. after
geting knowledge about the expense or income the same is
posted into right head it is used to prevent from error of
ommisstion, commission, pricipals.
when trial balance does not tally inspite of the best
effort so presantion of fianla account can not posspond
for a long period so supense account is placed when debt
side of trial balance is short supense account is placed on
debt side and when credit side is short supense account is
placed credit side
You give a loan for your friend a 1000 rs he returns 600 rs
and u have to close ur accounts what should u do to close
the accounts? and given the journal entry for 400 rs?and
where will the 400 rs come in new account and entry for that
can you give a answer of below question bco'z I think I
will confuse u or i am confused?
suppose u deposit amt 50000 ( for one Year) on which u get
4%int per annuam (simple int) give me a journal entry for