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Definition of Suspense Account. A suspense account is a general ledger account in which amounts are temporarily recorded. The suspense account is used because the appropriate general ledger account could not be determined at the time that the transaction was recorded.
Suspense account is a holding account used in accounting and finance to temporarily record financial transactions until they are transferred to their designated destination, including entries that are unclassified, unallocated, doubtful, disputed, erroneous, in-transit or in-progress.
Jan 3, 2024 · Suspense Account Explained. A suspense account is a temporary account where entries with discrepancies and doubtful factors are parked. Toward the end of the accounting period, all discrepancies are sorted and accounted for to their permanent entities.
A suspense account is an account used temporarily to carry doubtful entries and discrepancies pending their analysis and permanent classification. It can be a repository for monetary transactions (cash receipts, cash disbursements and journal entries) entered with invalid account numbers.
Jan 18, 2023 · The suspense account in accounting is a general ledger account used to make temporary unclassified transaction postings until the correct classification can be determined using transaction analysis. The suspense account maintains the double entry at the time of posting when the correct account is unknown.
A suspense account is a temporary holding account used to record financial transactions that have questions around their accuracy and validity. These potentially incorrect financial transactions are either initially recorded in the suspense account, or moved from the general ledger into the suspense account.
Definition: An account that holds a given unidentified operation temporarily. It is a provisional account set to record an accounting transaction until its nature is properly recognized and classified. What Does Suspense Account Mean? Contents [ show]
