Clearing Suspense Account Bookkeeping Question

Clearing Suspense Account

Clearing Suspense Account

I am using two MYOB files - one in AUD and one set up as a USD file.


WHen transferring funds between the two files, should I open a clearing account to handle the transfers in each direction?

If so, in what category should the clearing account be (Asset, Liability, Bank, etc??)
Cheers! Linda

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Clearing Suspense Accounts

by Kate

When I clear a Suspense account do I have to clear it entry by entry or can I make one entry in General Ledger using the specific expense accounts totals only?

When you clear a suspense account, you do not have to clear the account entry by entry. It is fine to go ahead and make one clearing entry in the general ledger using the specific totals for each expense account that you are re-categorizing to.

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Errors In Suspense Accounts

by Shelley Anne
(West Indies)

How do I know which errors goes into the suspense account?

The suspense account is a temporary account. It is a general ledger account that begins each accounting year with a zero balance. Any income or expense transactions or errors that are unable to be categorized without further research or clarification should be put in the suspense account to be transferred to the appropriate account when more information is obtained.

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How To Record Suspense In Simply Accounting?

by Donna
(Vancouver, BC)

When you are moving money through the business account (money in = money out)how do you note it in Simply Accounting. I recently had a collegue deposit a cheque in my business account and then I withdrew that amount for him). His bank had a 7 day hold on cheques and he needed money sooner.

So... basic question is how do you record money in/money out so it does not show up as revenue or expense?


Hello Donna, Thank you for your question.

If you do not want your money in/money out to show up as revenue and expense, you will need to have it pass through on the balance sheet. You can accomplish this by setting up a current liabilities account.

Your money in transaction would be:

DEBIT Cash (Asset)
CREDIT Money In/Money Out (Current Liability)

While your money out transaction would be:

DEBIT Money In/Money Out
CREDIT Cash (Asset)

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Reversing a Suspense Account DR

I am using SAGE instant accounts.

I have obviously made an error when posting journal entries for the purchase of a motor vehicle. I started off by showing the puchase as a bank payment of an invoice to the garage but then deleted this through corrections as we paid for the vehicle out of our own money.

I had a debit of £5875 in the nominal account for Motor vehicles and I deleted the entry of the invoice and payment.

I then entered the £5875 as a CR in capital.

What I have ended up with now is:

£5875 DR Motor Vehicles
£5875 CR Capital
£5875 DR Suspense account.

I am now trying to sort out my year end and I cannot work out how to get rid of the suspense account posting without messing up everything else.

Can you help?


Hello,

Thank you for your question.

I don't personally have experience with the SAGE software.

Hopefully someone else out there can help with this one?...

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Suspense A/C Postings


(Daphne)

Plant & Machinery maintenance cost $600. Cheque entered in Cash Account as $606. In asset account of Plant & Machinery the amount of $606 was debited.

I see two errors here 1) Error of principle (wrong type of a/c) and 2) incorrect amount posted into two account.
I am puzzled as to the corrections I should make. Would the Journal entries be Suspense Ac (CR) $6 and Cash A/c (DR) $6 Then Journal 2 correction (transfer between accounts) Plant and Machinery maintenance DR $600 PLant and Machinery Assets CR $600. Then correct Ledger postings to reflect this eg Plant & Mach maintenance A/c Dr and Plant and Mach Assets A/c Cr

I do hope you can help me, I am still puzzling over this one. Best Regards.


Orignal entry would have been as follows:

DEBIT CREDIT
Cash Account 606
Plant & Machinery Asset 606

The entry to correct both errors would be:

Cash Account 6
Plant & Machinery Asset 606
Plant & Machinery Maintenance 600




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Suspense Account


(Daphne)

If a cash sale of $4000 is credited to Sales A/c and also credited to the Cash A/c how do I fix this using the Journal entry and the Suspense A/C?

I am have difficulty understanding that to Debit the Cash and remove the Cash Credit I must double the amount in the Suspense A/C

Journal Dr Cr
Cash 8000
Suspense 8000

Sales A/C 4000
Cash A/C 4000

Cash 8000
Suspense A/C 8000

Is this how it is shown? I cannot get me head around this one. Would appreciate any help available.



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Suspense Account Correction Entry

The purchase of new tools and equipment + vat has been posted as debit to repairs and maintenance (net amount) and debit to the vat account and credit the bank £998.75.

What would the suspense account entry be to correct this?


The suspense account entry to correct the above transaction would simply be to credit repairs and maintenance for the net amount and to debit the tools & equipment asset account.

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Suspense Accounts

by Paul
(Harlow)

Trial Balance extracted at 30 June 200X failed to agree and the difference of £680 was recorded in the credit side of a Suspense Account. On investigation the following errors were discovered:

• A purchases invoice for £157 had been posted to J W Day & Sons in error. The goods had been bought from Days’ Supplies.

• The Sales Day Book had been overcast by £220.

• A cheque payment for repairs to the office building of £41 had been entered in the accounts as £14.

• A payment by cheque of £50 to A. Biggs had been debited in the Cash Book and credited to A. Biggs’ Account.

• The purchase of a motor vehicle costing £5600 had been entered correctly into the Bank Account but debited to the Motor Vehicles Account as £6500.

• A credit sale of £180 to J Chin had not been entered into the accounts.

Required:

• Journal entries to correct the above errors.

• A Suspense Account showing the original opening balance and the entries that must be made to clear the account

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Suspense Accounts Entry

by Ujjwal Kapasi
(Duba, U.A.E)

1. $200 cash taken for the owner's personal expense had been debited in the cash account, and debited to general expense. What is the correct entry?

Hello Ujjwal Kapasi,

Thank you for your inquiry.

The correct entry for the above transaction would be:

CREDIT CASH $200
DEBIT OWNER'S DRAW $200

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Using Suspense Account on MYOB

by Vote for Pedro
(Queensland)

I needed that you please let me know in detail how you process on MYOB monies that you don't know where they are coming from and why. Step by step please, involving a suspense account. From the undetermined stage until when you find out where it belongs to regarding monies that are deposited into a business bank account, or come via cheque without the accompanying remittance advice, from debtors and otherwise, until the stage when we know after conducting our investigations where it should go to.

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What Is Suspense Account?


(Sharron)

Suspense Account Questions

Suspense Account Questions

What is the suspense account? What should be put into a suspense account from a journal account and how is it worked out? My bookkeeping book is not very clear - this is of course manual bookkeeping. Many Thanks

A suspense account is a temporary account. It is a general ledger account that begins each accounting year with a zero balance. At the end of the accounting year any balance in the account will be transferred to another account which is referred to as closing the temporary account.

An example of a temporary suspense account is the uncategorized expense account. The uncategorized expense account is used to keep a log of the expenses that need further research before being able to classify it.

After the detail has been obtained and the expense can be classified, the expense showing in the uncategorized account will be transferred or closed to another account thereby returning the account balance to zero.




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Zero out Suspense Account

I have an amount that has existed in the suspense account for 4 years. It was generated from a payment to a credit card that balances now. What is the correct J/E that needs to be made to zero out the Suspense Account.

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