uspense account

valentino46valentino46 Well-KnownRegistered Posts: 124
hi guys,

i have asuspense account with a debit balance of 750.00 and a credit balance of 1124.55

theamount of 750 represents a cheque made out earlier in the year for a personal expense so i have drafted a journal showing:

dr personal account 750
cr suspense 750

to clear this amount from the suspense account.

the credit balance of 1124.55 is poceeds on disposal of afixed asset, the aset originally cost 2317.69 and accumulated depreciation is 946.23 at the end of the year.
i am unsure as to how to draft a journal to clear this amount from the suspense account.

any help greatly appreciated,

cheers

rob

Comments

  • Gem7321Gem7321 Experienced Mentor DevonMAAT, AAT Licensed Accountant Posts: 1,438
    To remove the asset from the balance sheet you need to:
    Dr accum depn 946.23
    Cr cost 2317.69

    So at the time the asset was sold it was worth 1371.46
    It was sold for 1124.55 creating a loss of 246.91
    Therefore the rest of the journal is:

    Dr suspense 1124.55
    Dr loss on disposal (P&L account) 246.91
  • valentino46valentino46 Well-Known Registered Posts: 124
    suspense acc

    thats grat thanks, i was trying to enter to many things into the suspense account resulting in incorrect figures.

    should i have approached this journal as if no ntries were initially made in the general ledger?

    thankx

    rob
  • Gem7321Gem7321 Experienced Mentor DevonMAAT, AAT Licensed Accountant Posts: 1,438
    I would assume that when the receipt went through the bank the only entry made was
    dr bank
    cr suspense
  • valentino46valentino46 Well-Known Registered Posts: 124
    ok makes sense

    thank you
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