DESKTOP EDITION CLOUD EDITION SERVER EDITION GUIDES FORUM

Suspense Account Junk


#1

Why is all this stuff ending up in suspense?


#2

I am new at this, but the when fund are left in suspense it is because the assets and liabilities are not in balance. The difference is therefore placed in suspense.


#3

There is always a reason why some transactions would be posted to suspense. Here a few:

  • Incorrect journal entries where debits don’t equal credits (the difference goes to Suspense)
  • Incorrect opening balances where debits don’t equal credits (the difference goes to Suspense)
  • Uncategorized transactions where account is not selected on line item (the line item amount goes to Suspense)

etc.

From accounting point of view, it’s important these amounts go to Suspense to make sure your accounting system doesn’t break double-entry accounting principle where assets - liabilities = equity even if you do something wrong.


#4

Thanks Guys, I am an Idiot! I have worked out what I was doing wrong.