Suspense accounts

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi to all

I have a query with suspense accouts for ETBs.
If I can not clear the suspense account in the adjustments and it has to go over to the balance sheet columns, am I right is assuming that if its a CREDIT balance it will be shown as a current asset in the balance sheet and if its a DEBIT balance on the suspense, it will be a current liability in the balance sheet.

Any help would be much appreciated.

Thanks

Di

Comments

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

    Hi Di.

    This question has been answered before.

    Basically you should always be able to clear your suspense account.

    Entries do not 'swap sides' i.e if it is a debit entry on the T.B., it will be a debit entry on the P&L or B/S.

    Scott.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Suspense accounts

    Di,

    You seem to have that reversed.

    If the suspense balance is a debit it is a current asset. If a credit a current liability
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Suspense accounts

    Hi Scotty

    Thank you for the info.

    I understand that you should be able to clear the suspense, but what if you can't?

    I was lead to believe that the suspence would not go into the P & L but only the BS.

    What I need help with is if its a debit what is it and if its a credit what is it?

    Thanks

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

    Hi Graham

    Thanks for the info but I was taught that the suspense ONLY goes into the balance Sheet.

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

    That is correct. Current assets and current liabilities appear in the balance sheet. Remember that the balance sheet is not a ledger account and that account balances are listed (not transferred) to the balance sheet. Any account that has a debit balance will appear amonst the debit items in the balance sheet (i.e. assets)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Suspense accounts

    Graham

    Thanks very much for your help.

    Much appreciated.

    Di

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