Any amount posted to the suspense account will only be present temporarily, as this amount will be investigated and posted to the appropriate account. Designed for freelancers and small business owners, Debitoor invoicing software makes it quick and easy to issue professional invoices and manage your business finances. Unmatched amounts are clearly indicated, meaning you can go back and match them easily once you know where they belong.
The format of https://www.bookstime.com/articles/what-is-a-trial-balance entries will be either a credit or debit. You might receive a partial payment from a customer and be unsure about which invoice they’re paying. Hold the partial payment in a suspense account until you contact the customer. When you find out the invoice, close the suspense account and move the amount to the correct account.
Uses of Suspense Account
Unfortunately, there was one amount that did not have an account designated. In order to complete the assignment by the deadline, the accountant recorded the “mystery” amount in the general ledger suspense account. When the controller is available, the accountant will get clarification and will move the amount from the Suspense account to the appropriate account. Identifying an amount shouldn’t be an impossible task (if so, it may suggest fraud). Remember to consider issues like an inaccurate recording of funds (for example, money going into the cash account and not the sales account) and unrecorded expenses, which can be traced back to their invoices. A suspense account will be managed by the finance team and serve as a catch-all for unknown amounts.
A suspense account is an account used to temporarily store transactions for which there is uncertainty about where they should be recorded. Once the accounting staff investigates and clarifies the purpose of this type of transaction, it shifts the transaction out of the suspense account and into the correct account(s). Whether intentional or accidental, partial payments can be tricky to match up to invoices. You can hold them in a suspense account until you know which account they should move to. For suspense account journal entries, open a suspense account in your general ledger.
