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Categories >> Accounting >> Accounting AllOther
 
 


 

 
 Audit interview questions  Audit Interview Questions (428)
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 Accounting General interview questions  Accounting General Interview Questions (2810)
 Accounting AllOther interview questions  Accounting AllOther Interview Questions (4363)
Question
What Does Suspense Account Mean?
 Question Submitted By :: Accounting-AllOther
I also faced this Question!!     Answer Posted By  
 
Answer
# 1
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.
 
Is This Answer Correct ?    43 Yes 5 No
Chandu
 
Answer
# 2
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.
 
Is This Answer Correct ?    10 Yes 0 No
Chandana
 
 
 
Answer
# 3
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..
 
Is This Answer Correct ?    12 Yes 3 No
Sinduja
 
Answer
# 4
It is a temparary A/c 
Is This Answer Correct ?    6 Yes 1 No
Devandra Parab
 
Answer
# 5
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.
 
Is This Answer Correct ?    5 Yes 2 No
Lakshmi Narayana
 
Answer
# 6
when the debit and credit balances do not match in the
trial balance the difference is transfereed to the suspense
account, the difference can arise to the errors in the book
keeping.

later rectification of errors is done to nulify the
difference
 
Is This Answer Correct ?    5 Yes 2 No
Rajani
 
Answer
# 7
An account that is used to store short-term funds or
securities until a permanent decision is made about their
allocation..
 
Is This Answer Correct ?    1 Yes 0 No
Divya Ostwal
 
Answer
# 8
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.
 
Is This Answer Correct ?    1 Yes 0 No
Vinod
 
Answer
# 9
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.
 
Is This Answer Correct ?    1 Yes 1 No
Padeep Banduni
 
Answer
# 10
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
 
Is This Answer Correct ?    1 Yes 1 No
Raghavendra
 

 
 
 
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