how can i know that where to use suspense a/c ?

Dear Student



Due to errors any error in journal entries especially one-sided errors, There may be cases when Trial balance does not match i.e when the total of the debit column does not match that of the credit column, then the difference of the Trial Balance is transferred to a temporary account in order to avoid delay in preparation of the financial statements. This temporary account is termed as Suspense Account and it is prepared only in case of one-sided errors in the books of accounts. 



Regards 
 

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If a entry has one-sided error then it will be rectified by passing a journal entry either debiting or crediting the suspense account. Its simple to recognise where you have to open a suspense account. If you find that the entry has one-sided error then open suspense account.
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