Suspense account

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:32AM in AAT student discussion
Help needed asap
A cheque sent to tina supplies has been entered in cash book correctly as £234, but in personal account and relevant control acount as £432, which of this is suspense acount and which is not?

Could this be between bank and cash book and no suspense? Iam a little bit confuse help! :?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Suspense account

    The trial balance will not balance as the cr entries (cashbook) will be higher than the debit entries (PLCA). Therefore the difference between them will go into suspense. The suspense balance would be £198 dr. To clear this you would dr PLCA and the suppliers individual account and cr suspense with £198.

    Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Suspense account

    Do you mean,
    I should Debit tina suplies with £198 and Credit suspense account with £198?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Suspense account

    The Tina Supplies is part of the subsidiary ledger and is not part of the double entry system although it would need correcting. The correct journal would be debit the control account (and the Tina Supplies account with it) and cr suspense.

    Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Suspense account

    Thank you very much for your assistant
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Suspense account

    I thought it would be to debit Suspense 198 and credit Purchase Ledger Control 198 to clear suspense.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Suspense account

    Yes Roy you are right, when I wrote that originally I was confusing that Tina was a customer and not a supplier so I edited it and didn't change the reversal.

    However as I complained on another thread about people editing after someone else has posted something making their reply meaningless I will leave my glorious mistake for all to see and correct it in another reply!!

    Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Suspense account
    bluewednesday wrote:
    The trial balance will not balance as the cr entries (cashbook) will be lower than the debit entries (PLCA). Therefore the difference between them will go into suspense. The suspense balance would be £198 cr. To clear this you would dr suspense and cr PLCA and the suppliers individual account with £198.

    Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Suspense account

    what is the actual answer to this
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Suspense account

    The amended answer is the correct answer.

    The way to be sure is to draw up t accounts and write down what has happened and then draw another set to work out what should have happened. Then the journal entry should fit between and be easier to see.

    Annette

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