SUSPENSE ACCOUNT

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
I have DR (bank) and CR (bank) entries in Suspense account. What do they mean???

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:SUSPENSE ACCOUNT

    Can't think of anything except:

    1. Someone debited the bank and didn't know where
    to put the credit entry!
    2. Someone credited the bank and didn't know where to put the debit entry!

    If the amounts are the same you can't just assume they marry off and leave it at that.

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:SUSPENSE ACCOUNT

    DR entry is 750
    CR entry is 1224
    How I can show this account in Trial balance then?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:SUSPENSE ACCOUNT

    You would balance the accounts off and show a brought forward figure of £474.00 Cr under 'Suspense Account' on the trial Balance
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:SUSPENSE ACCOUNT

    thanks!! i hope it's right,because there isn't balance b/d from previous period
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:SUSPENSE ACCOUNT

    There should'nt be a fiqure to bring forward from the previous period the suspense account should be zero at year end,ie the the dr & cr bank you have now are a sale and an expense, you will ask the client what they are if you do not get an answer post the dr bank as a sale/income and the cr as an OPP ( other private payment ) Hope this helps
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:SUSPENSE ACCOUNT

    thanks
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:SUSPENSE ACCOUNT

    Just out of interest am I right in thinking that this would be an adjustment to the trial balance, when it was extended?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:SUSPENSE ACCOUNT

    In the majority of cases unknown balances in the suspense account occur when an opening balance has been placed on an account as the programme does not where to place the 2nd entry it defaults to the suspense account. You should check the Reference and run a search to find the 1st entry and then decide where the amount should be posted and journal the amount out.

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