Suspense accounts

System

Hi to all

I have a query with suspense accouts for ETBs.
If I can not clear the suspense account in the adjustments and it has to go over to the balance sheet columns, am I right is assuming that if its a CREDIT balance it will be shown as a current asset in the balance sheet and if its a DEBIT balance on the suspense, it will be a current liability in the balance sheet.

Any help would be much appreciated.

Thanks

Di

System

Re:Suspense accounts

Hi Di.

This question has been answered before.

Basically you should always be able to clear your suspense account.

Entries do not 'swap sides' i.e if it is a debit entry on the T.B., it will be a debit entry on the P&L or B/S.

Scott.

System

Re:Suspense accounts

Di,

You seem to have that reversed.

If the suspense balance is a debit it is a current asset. If a credit a current liability

System

Re:Suspense accounts

Hi Scotty

Thank you for the info.

I understand that you should be able to clear the suspense, but what if you can't?

I was lead to believe that the suspence would not go into the P & L but only the BS.

What I need help with is if its a debit what is it and if its a credit what is it?

Thanks

Di

System

Re:Suspense accounts

Hi Graham

Thanks for the info but I was taught that the suspense ONLY goes into the balance Sheet.

Di

System

Re:Suspense accounts

That is correct. Current assets and current liabilities appear in the balance sheet. Remember that the balance sheet is not a ledger account and that account balances are listed (not transferred) to the balance sheet. Any account that has a debit balance will appear amonst the debit items in the balance sheet (i.e. assets)

System

Re:Suspense accounts

Graham

Thanks very much for your help.

Much appreciated.

Di