Help for Control Account Reconciliation and Suspense Account ?

Omer AYDINLI
Omer AYDINLI Registered Posts: 19 Dedicated contributor ? ? ?
Hi,
Can anyone give me more detailed info about control account reconciliations and suspense account?
I am really stuck and confused about them.

Thanks for your help.

Omer

Comments

  • clegganator
    clegganator Registered Posts: 184 ? ? ?
    In laymans terms;

    Suspense account is for when something has gone wrong and your finding the error. Say something has been posted in DR instead of CR, put the difference in suspense and find the mistake. More or less.

    Control accounts are used when there is a balance but it isn't settled. For instance, creditor control is used when a purchase has been made on credit but not yet been paid. It will sit there until it is and then the bank/cash will be credited and the control account debited to remove. Vice versa for debtors. Also used for wages & PAYE but the theory remains the same, a place to hold amounts and balances until they are settled.
Privacy Policy