A suspense Account is used to
Question 1 Report
A suspense Account is used to
Answer Details
A suspense account is used to record the difference between the debit and credit balances in the books of accounts until the errors are located and corrected. It is a temporary account that accommodates any imbalances in the accounting records and ensures that the trial balance can still be prepared. Once the errors are found, the necessary adjustments are made to the appropriate accounts, and the balance of the suspense account is transferred to the correct accounts in the general ledger. In summary, a suspense account helps to ensure accurate financial reporting by identifying and correcting errors in the accounting records.
Download The App On Google Playstore
Everything you need to excel in your exams
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning