Suspense Account

Options
bevkes
bevkes Registered Posts: 25 Regular contributor ⭐
in Chat and off-topic discussion
I'm heving a little problem with this one. Here is the case:
I have been posting the cheques which i'm not sure of what they were paying to the Suspense account.Its month-end and i still don't hev a glue of what these were paying but i hev to produce some Management accounts. Should i treat these as an asset or liability in the Balance sheet?

Any help will be appreciated......

Comments

  • visha
    visha Registered Posts: 218 Dedicated contributor 🦉
    Options
    If you have been paying cheques to some one and you don’t what they are for, you must ask the person who has signed them. He/she should know what the payment is for.

    If you have to prepare the management accounts you need to ascertain the significance of the balance I the suspense a/c. If the omission of it will not alter the substance of your profit I would ignore it for this month.

    If the inclusion or exclusion of the suspense a/c as a expense will have a considerable impact on the profits then the suspense a/c need to be sorted before the management accounts are prepared.

    Refer to SSAP 18
  • rowland
    rowland Registered Posts: 5 New contributor 🐸
    Options
    suspense account

    the secrety behind suspense is that you have to know
  • rowland
    rowland Registered Posts: 5 New contributor 🐸
    Options
    suspense account

    the secrety behind suspense is that you have to understand the balances of the accounts, if lets say you had a
  • rowland
    rowland Registered Posts: 5 New contributor 🐸
    Options
    suspense account

    the secrety behind suspense is that you have to understand the balances of the accounts, if lets say you had an expense undercast! you just have to know that to correct this you have to top up the
  • rowland
    rowland Registered Posts: 5 New contributor 🐸
    Options
    suspense account

    the secrety behind suspense is that you have to understand the balances of the accounts, if lets say you had an expense undercast! you just have to know that to correct this you have to top up this account by the missing value and with overcasts the rule is vise sersa.

Categories

Privacy Policy