What is Suspense Account? How is it opened and how is it closed?

suspense account is an account in the ledger that is used to temporarily store any transactions for which there is some uncertainty about the account in which they should be recorded. Once the accounting staff investigates and clarifies the purpose of the transaction, it shifts/transfers the transaction out of the suspense account and into the correct account. An entry into a suspense account may be a debit or a credit.

For Grade-XI students, the role of Suspense A/c is basically restricted to the rectification of one-sided errors. All the rectification entries involving Suspense A/c are transferred to this account and whatever is the closing balance (debit minus credit) is shown in the Balance Sheet. In other words, what we can say is that the account is closed by showing the balance on the Assets side, when it is a debit balance and on the Liabilities side, when it is a credit balance.

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he suspense account is a general ledger account that acts as a holding account until the error is discovered or the unknown transaction is identified. When working with the trial balance, you can open one suspense account to hold all of the discrepancies until you find them.
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