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Suspense Accounts having a problem with it.

matthewdmatthewd Just JoinedRegistered Posts: 4
Hi All

I have recently started doing the AAT through distance learning and i am up to my 3rd assignment but i am struggling getting my head around suspense accounts. If there is a difference of 680 on the credit side does that then go to the debit side in the suspense account. Thought i would post on here to see if i can get some help. many thanks

Comments

  • sarahwilsonsarahwilson Experienced Mentor Registered Posts: 567
    Think what you are trying to acheive with a suspense account. You are trying to make the TB balance, so for instance you have £680 more on the credit side than the debit side, you would debit suspense with £680 to make it balance until you discover what the problem is. Its exactly the same if you have £10 more on the debit side than the credit side, you would credit the suspense account with £10.00
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    Sarah's right.

    Lets' say you have a total debit column of £1000 and a total credit column of £1680. You need both columns to total £1680.

    So you put a £680 Debit in the suspense account.

    When you have discovered what the £680 in the suspense account is, you then credit suspense and debit the correct account.
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