Quick Question - Suspense

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:31AM in AAT student discussion
I'm due to take my Unit 5 Sim tomorrow and just wondering if I need to balance my trial balance by creating a suspsense account(fingers crossed I don't need it!!!), but what I don't know is where does it go in the final accounts?

P&L or Balance Sheet and then where??

Please help
Many thanks,
Scooby :wink:

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Quick Question - Suspense

    It doesn't. You should clear the suspense account before drawing up the final accounts and doing this will be a task in the sim. They always (as far as I can tell) have a suspense account and then give you the information to clear it by doing a journal and making adjustments on the ETB.

    If you've still got a balance on the suspense a/c you can't then use it in the final accounts as you don't know which account(s) - if any, you could have made a casting error in the trial balance - the errors(s) might lie.

    Doing my Unit 5 sim on Thursday so I hope that's right :?

    Good luck anyway

    Chris
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Quick Question - Suspense

    Thanks for that, I know it's supposed to be clear but I'm just thinking in case it isn't.

    I read back on the comments from the last exam that many couldn't get the TB to balance and opened a suspense account. I was just wondering what would happen to it then?

    Hope your Sim goes OK.

    Scooby :wink:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Quick Question - Suspense

    Hi Scooby.

    I agree with Chris - you should clear your suspense account before moving on. There will be reasons why you'll have one - and the information will be there to clear it.

    Scott.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Quick Question - Suspense

    I ended up with 10.50 left in the suspense a/c that I couldn't clear in the sim I did today.. grrr.

    Chris
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Quick Question - Suspense

    Hi Chris.

    I wouldn't worry about £10.50.

    Scott.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Quick Question - Suspense

    If for whatever reason I can't clear a suspense account I put it into the p and l so my line manager can sort it out.

    I agree that you should clear the suspense but if for whatever reason you can't I would imagine it's better to put it into the draft accounts than to ignore it (and therefore not balance).

    Annette

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Quick Question - Suspense

    I agree with BlueWednesday. Sage always puts the suspense account in to the P&L. The P&L is looked at each month and the suspense account is therefore noticed immediately and usually dealt with by the Accountant (or me in the case of our company). The balance sheet, whilst it should be reconciled every month, often is done several months at a time so the adjustment could be missed for a while.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Quick Question - Suspense

    just a hint i did my unit 5 sim in dec and it had a lovely asset disposal which was used for part exchange to buy a new one so make sure you know how to do this incase its in yours
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Quick Question - Suspense

    I actually thought the sim was quite straightforward, there's just lots of it so there are many places to make errors. Time was my biggest problem, I spent too long trying to clear the suspense account and was really rushing at the end.

    I think I did OK anyway, I'll find out tomorrow :?

    Chris
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Quick Question - Suspense

    Ooops double post :oops:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Quick Question - Suspense

    hey can you tell me what topics came up for the sim. As im sitting it next week. thanks

    Anjali
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Quick Question - Suspense

    how did ur sim go, can u tell me what topics came up, and what to revise, many thanks

    Anjali
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Quick Question - Suspense

    Hi

    Probably too late with this post, but the suspense goes into the Balance Sheet on the final accounts where it is shown as either a current liability if it is a credit balance, or a current asset if it is a debit balance.

    It only goes in the P&L account if it is being written off.

    I agree that Sage posts it to P&L but I assume that is because it is showing it as an expense at the time.

    Tracy
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Quick Question - Suspense

    Tracy

    I would never show the suspense account in final accounts, something would have been done with it before then. I have never seen suspense shown in final accounts either, only in draft accounts. Obviously I may be completely wrong - just saying what my experience has shown.

    Annette

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