Is anybody familiar with the concept of Suspense accounts? Is it true that they are only used when the TB does not balance? Also, is it true that they are only used when an error is found on one part of the double entry and so the other side of the double entry is goes in the suspense account?
I have an assignment to complete where the TB does not balance. I have put the balancing figure for the TB into the suspense a/c to start off with, and now I need to put the following entries in the suspense account . I shall be grateful if you can guide me as to which a/c I should put the entries-
1. A purchase invoice has been posted to the wrong supplier a/c. 2. The Sales Day Book has been overcast by £290. 3. A chq payment for repairs to office building for £210 has been entered in a/c for £120 4. A payment by chq to a supplier has been debited in the cash book and credited to the supplier's a/c. 5. The purchase of a van for £7300 has been correctly entered in the bank a/c but debited to the van a/c as £8450. 6. A credit sale of £1500 to a customer has not been entered in the accounts.
I am happy to help you but have you actually got a tutor/training provider if yes what is the reason you post all your assignments here, you should just ask your tutor that's what you are paying for and they are getting paid for!!!!? I will have to start to charge you a fee for these ;) Fairly busy now but will have a look, but yes suspense accounts are used when something does not balance.
