suspense Account

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:30AM in AAT student discussion
Am stuck!!! Can anyone help me on suspense accounts.I get mistaken between the Journal and suspense account. Help please

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    suspense Account

    Probably be best to use an example - Fred Purchased a new piece of equipment for £500. The only entry which is made in the accounts is to the bank.<BR><BR>We know that the entry would be DR Equipment cost CR Bank.<BR><BR>The question states that the banking entry has been made but no other entry therefore the Dr would have gone to suspense account instead of equipment<BR><BR>The journal would be to to Cr suspense (to remove the entry from the suspense account) and Dr equipment cost.<BR><BR>In the T you would already have the Dr entry of £500 so you would simply do a Cr to equipment for £500 to bring back to nil<BR><BR>Hope this is understandable - I' not very good at explaining
  • System
    System Posts: 100,534 🤖 Admin 🤖
    suspense Account

    Thanks alot.Good luck 2morrow
  • System
    System Posts: 100,534 🤖 Admin 🤖
    suspense Account

    You to, I'm so looking forward to 5.15 tomorrow
  • System
    System Posts: 100,534 🤖 Admin 🤖
    suspense Account

    i'm might not finfish to after 6pm, ive got extra time - ive got 48 mins extra, suspense accounts i'm allright until it starts talking about depreciation & disposal of assets, see june 2004

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