a ledger account in which entries are made temporarily - for example, because the ledger account to which they should be posted cannot be identified, or because they represent errors which have been found but not yet corrected.
A temporary account that is used when you are unsure as to what you should do with a certain value. The Suspense Account can be used as a holding account until it is decided what should be done with the value. The balance on the Suspense Account should ultimately be zero. It is most commonly used in Sage when the Opening Balances are being put onto the system. Click here to go back to the top of the page
A suspense account is used when not enough information is available to post a transaction with the right offset. For example, dividends and interest are â€œpaidâ€ to a trust account on their payable date even if all of the money from depositors and paying agents is not received on time.
A temporary account used to force a trial balance to balance if there is only a small discrepancy (or if an account's balance is simply wrong, and you don't know why). A typical example would be a small error in petty cash. In this case a transfer would be made to a suspense account to balance the cash account. Once the person knows what happened to the money, a transfer entry will be made in the journal to credit or debit the suspense account back to zero and debit or credit the correct account. · · · · · · · · · · · · · · · · · · · · · · · · · · HOME