Suspense accounts

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi guys. i understand that if your trial balance doesnt balance you open up a suspense account. But, where do you put it? and then when you find out the error where do you do the journal to cancel out the suspense account. Theres no spare T accounts.<BR><BR>Chris.

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Suspense accounts

    Hi<BR><BR>You only use the suspense account when your trial balance doesn't agree, ie your debits are larger than the credits or vice versa, then you enter a single entry into the suspense account (located in the main ledger) in order to balance your double entry accounts and get the TB to agree.<BR><BR>Once you have located the error, you take the amount out of suspense by reversing it, ie if it was a debit entry you put in, you would credit the amount out of suspense and debit the amount to the correct account.<BR><BR>Hope this makes sense, and good luck with your exam if you are taking it on Tuesday!!<BR><BR>Tracy
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Suspense accounts

    If there are no spare t accounts & no follow on question re: the opening & closing of the suspence account it usually means that your trial balance should balance without any adjustments.<BR>Hope this helps & good luck with your exams.<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Suspense accounts

    I understand how to do the suspense account when my trial balance doesnt balance. But where would i actually draw up a T account to show the the amount in suspense? This is just in case i cant find out why my TB doesnt balance.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Suspense accounts

    Hi<BR><BR>Are you referrring to the actual exam?? If so, Zoe is correct in saying that they will tell you whether or not the TB should balance. But if you are trying to say that if it doesn't balance (and it's supposed to) and you cannot find the problem but want to show the examiner that you understand the principles involved in suspense accounts, then I would write the amount onto the TB, and draw up a T account on the spare paper provided, referencing it to your answer. That way it shows initiative, but doesn't ruin the accounts pre-printed on the exam paper.<BR><BR>Hope this helps, Good Luck!!<BR><BR>Tracy

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