Suspense accounts help needed

danielle93
danielle93 Registered Posts: 17
edited May 2017 in General discussion - Foundation level
Hello everyone.

I am really struggling with the suspense accounts. I can't seem to understand how to calculate the balance after a suspense account has been opened. Also, how to close a suspense account. It seems there is a different method for every single exercise.

If anyone could help, that'd be great.

Many thanks
Danielle

Comments

  • PeterC
    PeterC Registered, Tutor Posts: 249 Dedicated contributor 🦉
    In AAT examples, an entry in a suspense account usually arises when the trial balance doesn't balance. To make it balance, the missing debit or credit is added to a suspense account to fix the problem, temporarily. Note that this is a single-entry transaction (ie. not the usual double-entry).

    Once the cause of the problem is resolved, the suspense account should end up with a zero balance. See media.wix.com/ugd/9a8e75_cc970ee39b30491aa1c04f9bd5079d85.pdf
  • Bertie
    Bertie Registered Posts: 376
    No need to shout helppppppppppppppppp.

    Suspense is closed when you've located the error and either CR or DR the hell out of it.

    You can not have an active account with a £0 balance.

    BTW @PeterC awesome resource. +1 for students and members to visit.

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