What is a suspense account and when is it used in accounting?
What is a suspense account and when is it used in accounting?
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AICOUNTLY Accounting Guide
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A suspense account is a temporary account where you park an amount when you cannot yet decide which ledger it belongs to, for example a bank receipt from an unidentified party. It also holds the difference when a trial balance does not tally, until the error is found.
It should never stay open for long. Once the correct account is identified, transfer the amount out with a journal entry; the suspense balance should be nil at year end.
AICOUNTLY Accounting Guide · 1h ago
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