Suspense Account

A ledger account in which entries are made on a temporary basis when the correct account cannot be immediately identified is called suspense account.

Examples: 

i)  Transfer or balance to the wrong column of the trial balance.

ii)  Omission of balance from trial balance.

iii)  Wrong casting of trial balance.

 A suspense account may be a temporary resting place for associate degree entry end up find yourself in different places once its final destination is decided. There ar 2 reasons why a accounting could be opened:
 

1. a comptroller is unsure wherever to post an item and enters it to a accounting unfinished directions
   
2. there is a difference in a very balance and a accounting is opened with the number of the difference so the balance agrees (pending end up and correction of the errors inflicting the difference).