Suspense accounts

I need help understand suspense accounts

I don't understand what side to enter entries on, does it matter?

when I take the green light test I always get these questions wrong

example is when they use a journal and have multiple suspense and you have to transfer It, either add or minus it from the the balance such as sales

I''ve been assuming that when its opposite such as sales is credit and in the journal its a debit I would minus it, is this right?

thanks

Comments

  • CeeJaySixCeeJaySix Well-Known Posts: 645Registered
    DDO,

    Your question is very unclear, which probably explains the lack of answers. Perhaps you could reword or provide a specific example?

    Amounts that end up in a suspense account are usually those where the correct posting is unknown. For example, you notice you have received an amount into the bank, but you haven't received a corresponding remittance advice and therefore don't know which of your debtors this relates to. So you can post the debit to bank, but you don't know where the credit goes; for now you post it to suspense.

    After you send out your customer statements at the end of the month, a customer rings to ask why their customer account has not been credited with the payment they made. It turns out the remittance advice was lost in the post, and this is the receipt you have sat on suspense. So you debit suspense to return it to zero, and credit the customer account.

    I'm not sure if that answers the question you're asking, please re-post if not.
  • DDOROURKE123DDOROURKE123 Posts: 62Registered
    I figured it out, Its hard to explain to someone else, when I was writing it, it made sense to me but now reading I don't even know what is was asking

    sorry
  • amy256amy256 Posts: 32Registered
    I'm not entirely sure what you're getting at from the way you've worded the question.

    There are a number of things that would need you to use suspense accounts within journals to correct the errors such as calculation errors and recording two debits or two credits. How you use the suspense account depends on the question, so if you could give us a bit more detail I can try to help?

    I see you've worked it out so that's good :) But if you're still unsure just drop me a message and I will try to help.
    AAT Level 3 :)
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