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suspense accounts

coombs86coombs86 New MemberRegistered Posts: 5
is there an easy way to remember whether a suspense account is needed and trying to remember the diferent types of errors that occur?

Comments

  • coojeecoojee Experienced Mentor Registered Posts: 794
    coombs86 wrote: »
    is there an easy way to remember whether a suspense account is needed and trying to remember the diferent types of errors that occur?

    A suspense account is only ever needed where the error is one sided, eg a DR entry was made but no CR entry. If the error means that the TB won't balance then a suspense account is needed. For a TB not to balance the double entry mustn't have been complete.
  • CeeJaySixCeeJaySix Well-Known Registered Posts: 645
    Yep, as coojee said it's generally used (at least at this stage) when at least half of your entry is wrong and therefore the sides don't balance, whether that's because you've missed one side altogether, mis-posted the figure on one side, posted two dr rather than one of each etc etc.

    I don't know an easy way, I'm sure you could come up with a neumonic, there's only five or six that a TB doesn't expose aren't there? Engage memory...

    Omission - missed altogether
    Original Entry - wrong figure
    Reversal - dr/cr swapped
    Commission - wrong account, correct type
    Principle - wrong type of account
    Compensating - two errors cancelling

    I don't think there's a list of errors a TB will expose that you need to memorise though is there?
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