Question

Answer in one sentence only :-

State the meaning of suspense account.

Answer 1

A Suspense A/c is a temporary account to which the difference of the Trial Balance is transferred in order to avoid a delay in preparation of the financial statements. When the total of the debit column does not match that of the credit column, and the error remains even after rechecking all the balances of the ledger accounts, then the difference of the Trial Balance is transferred to the Suspense A/c.