Suspense Account HELP urgent

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
I need some help regarding suspense accounts urgently. I have unit 3 devolved on wed night and I am soooo not prepared. If your trial Balance doesn't balance and you have to open a suspense account how do you go about doing this? I missed the lesson that this was covered in and I cannot find any info in my books about it. I am guessing that you put your suspense account in your trial balance whichever side the difference is ( ie trial balance is £500 short debit side so you debit the suspense account £500 ) But I have been told you need to ensure your balance of the suspense ac is 0. How do you do this? Any help would be muchly appreciated and/or any info on the unit 3 devolved. Many Thanks All

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Suspense Account HELP urgent

    You are right in what you are saying. If your TB doesnt balance, MAKE it balance by the Suspense account.<BR><BR>Then you would (in practice) go through the accounts until you had found the errors. When you find the errors you would correct the accounts concerned and then the suspense would equal nil and then you would know that you have found everything!<BR><BR>Hope this helps.<BR><BR>Amanda<BR><BR>We are in CHAT now if you wish to talk more about it (15.04.05 7.30pm)<BR>http://groups.msn.com/AATGroup
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Suspense Account HELP urgent

    hi as previous reply you are correct, make your tb balance by adding a suspense account. just to add to this if your suspense account is say 500 on the debit side the obvious list of journal entries coming Should have an overall effect of 500 credit to your suspense which as you know must be cleared so if unsure you have the correct sides on your tb look ahead at what u need to do in journal entries. hope this helps.<BR>ali

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