Suspense a/c

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hello can someone tell me if you have to put a sus a/c in the TB to balance will they always be balance sheet items? If for example there were more credits than debits would you always add to the debit side and put this as an asset on the balance sheet, or could you put it as an expense in the P&L? Also do you always have to add or could you in the above example deduct the credit side so it balances. Our tutor didn't really do much on the sus a/c just said to put it in if it doesn't balance!!!! Thanks for your help :roll:

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Suspense a/c

    Hello

    If you had more credits, then you'd need to balance this by increasing the debit side with a suspense account.

    So if you have a amount on the CR side of TB = Current Liabilities

    DR side of TB = Current Assets.

    Don't forget to do your usual checks before using a suspense but also my tutor said not to spend too long on it. I passed exams before with a suspense in the balance sheet - it still shows your understanding.


    Hope this helps!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Suspense a/c

    Thanks so does it always go on balance sheet?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Suspense a/c

    yes!

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