11-23-2004, 07:48 AM
<b></b> SUSPENCE ACCOUNT
" A suspence account is an account showing a balance equal to the difference in a trial balance. "
a suspence account is a TEMPORARY ACCOUNT which can be opend for a number of reasons . the most commomn reasons are as floows
a> a trail balance is drawn up which does not balance ( total debits do not equal toal credits ).
b> the bookkeeper of a business knows where to post the credit side of a transaction, but doesnot know where to post the debit ( or vise versa ) . for example, a cash payment might be made and must obviously be credited to cash. but the bookkeeper may not know wht the paymen is for, and so will not know which account to debit.
in both the cases a suspence account is opened uptill the problem is sorted out.....
IN english LAw, a bankrupt is a person who has committed an act of bankruptcy and who has been adjudged a bankrupt. such a person would be said to have committed an act of insolvency and to have been adjudged an INSOLVENT.
regrads.
alee_rulez
Never seek advice from a Chartered Accountant. They are trained to find problems not solutions.
" A suspence account is an account showing a balance equal to the difference in a trial balance. "
a suspence account is a TEMPORARY ACCOUNT which can be opend for a number of reasons . the most commomn reasons are as floows
a> a trail balance is drawn up which does not balance ( total debits do not equal toal credits ).
b> the bookkeeper of a business knows where to post the credit side of a transaction, but doesnot know where to post the debit ( or vise versa ) . for example, a cash payment might be made and must obviously be credited to cash. but the bookkeeper may not know wht the paymen is for, and so will not know which account to debit.
in both the cases a suspence account is opened uptill the problem is sorted out.....
IN english LAw, a bankrupt is a person who has committed an act of bankruptcy and who has been adjudged a bankrupt. such a person would be said to have committed an act of insolvency and to have been adjudged an INSOLVENT.
regrads.
alee_rulez
Never seek advice from a Chartered Accountant. They are trained to find problems not solutions.
