Journals, Drawings & Suspense accounts

sarahwilson

I'm getting in a real pickle today!!

If I have a suspense account on my TB and I have 2 omissions that I uncover one being capital not being credited to capital account and the other being drawings not being debited. Do I do both these journals with the suspense account as the balancing account or not. It doesn't make much odds how I do it I can't clear the suspense account which means I have made an error somewhere else but its just dawned on my I may not even involve suspense in both.

Diannew

Hi Sarah,

Are you using an Accounts package like sage, if you are can you not see where the postings to the suspence account have come from.

I use sage and can call up the nominals codes posted.

Hope this helps

Esme

If the other side of the entry has already been made, for example the bank has been debited with the capital but the capital account hasn't been credited then you do use the suspense account as the balancing account.

However, if the entry has been completely omitted from the accounts and neither entry has been made then you do not use the suspense account, you use the adjustment collumn in the TB to post the correct entries.

Hope this helps.