Answer Posted / t.selvun
Suspense account can be analysed as an account which arises
generally in two occasions one is during the course of
accounting and another is at the report processing.
First the suspense account arises in the course of accounting.
When an income is received or an expense is incurred and
that particular income or expense is not falling under the
standard 'head of accounts' as per the 'Chart of Accounts'
in system, the particular item is placed temporarily under
suspense account the same item can be conferred right head
of accounts in the later date.
Secondly the Suspense account arises during the process of
Reporting. When the final accounts are prepared and the
accountant is left with untallied trial balance (Mostly in
Manual system only) the difference in either Debit or Credit
is placed under Suspense Account until it is traced to save
time in waiting and to proceed further in the process,
provided the amount of suspense is not material i.e very
nominal with the magnitude of TB,
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