Suspense Accounts
13 September 2012
Unit 3 Preparing Ledger Balances and Initial Trial Balance requires students to develop competence in the preparation of a suspense account.
A suspense account is defined as "an account in which debits and credits are held temporarily until sufficient information is available for them to be posted to correct accounts". (CIMA terminology)
A suspense account is usually created and used in the following circumstances:
• When the posting analysis of an item is uncertain it may be entered to...