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suspense accounts

  • 2 posts
  • # 72101

hello everyone for the first time of entering this site.
would someone be of assistance to me as i,m studying to complete the level 3 but i need help  ( any ) with the use of suspense accounts  i,ve got two manuals  to learn but i need extra tuition especially on the correction of errors with the journal and the suspense account . any help gratefully appreciated in this matter .

  • 273 posts
  • # 72103

Hi Gerry

What do you need to know or should I say how much do you know?

e.g. Do you know why we use the suspense account?

A very basic explanation is we post to the suspense account until we know for definite where the amount should go.

So for instance:

Ive posted £200.00 that a cheque was written out for but with no explanation on the stub.  Until I meet up with the client I can't tell what the amount paid for and there is no invoice relating to it.  So I post it to the bank and the other side goes to the suspense account.

I then find out a few weeks later that the cheque was for a charity donation and therefore I need to post the donation to the correct nominal account - e.g. donations and bring the suspense account back to zero.

If I'm completely off the mark with answering your question let us know.

(p.s. not studying level 3 at the moment, just have exp of using suspense and journal correction)

Edited at 13 Jun 2011 11:29 AM GMT

  • 328 posts
  • # 72106

Hi Gerry,

 I have not taken level 3 as yet but studied journal corrections for my Level 2, plus i came across dealing with suspense account at work.

I agree with Liz explanation, hope it helps you.
@Liz thanks for the exampleSmile

Should you have a specific case study, please do not hesitate to post i. I like corrections.


  • 2 posts
  • # 72207

thank you liz and nathalie for your kind help in this matter i,ll briefly explain the probllem i,m learning my level 3 with home learning college who are very good but i have some experience of suspense accounts but obviously not enough at the moment i am learning the correction of errors eg  if you have a wrong entry in a control account or a wrong figure in your debtors or creditors ledgers it is the correction of the figures that i am interested in i,m particularly interested in how you obtain the opening balance figures for the suspence account  when correcting  the ledgers and the correct proceedures  about closing the suspence account once you have corrected the errors and why   thank you all once again as i am new to this site and look forward to helping or receiveing help in the future  and getting to know everybody 

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