Answer to Question #200829 in Political Science for qianhe

Question #200829

Give the reason why open a suspense account.(minimum 3)


1
Expert's answer
2021-05-31T17:06:02-0400

Suspense accounts are used to keep track of unclassified transactions. The account will retain entries indefinitely while you determine how to label them. As you collect more data, a suspense account might also retain information concerning discrepancies. While preparing a trial balance, a suspense account might be opened. The closing balance of an account that you calculate at the end of the accounting period is known as a trial balance. Hold the discrepancy in a suspense account until the debits and credits are reconciled. Besides, you might get a partial payment from a customer, but you're not sure which invoice they're paying for. Keep the partial money in a holding account until the consumer is contacted. Close the suspense account and transfer the funds to the relevant account once you've discovered the invoice. Moreover, if you don't know who a payment is from, you might open a suspense account. You may get a payment but be confused who made the payment. Look through your outstanding client invoices to see which one matches the payment amount if you don't know who made the payment. Make contact with the customer to confirm that it is their money and that the invoice is correct.


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