What type of account is a suspense account?
What type of account is a suspense account?
Depending on the situation, a suspense account can be any type of account ( i.e personal, real or nominal account).
Let us understand this with the help of an example.
Ram had received an amount of Rs.2500 but was unable to determine from whom and on what basis it was received. Therefore, this amount will be credited to the suspense account.
Now, after a few days it came to the knowledge of Ram that this amount was paid by Shyam, then the suspense account is treated as a personal account.
Similarly, in a different scenario if Ram came to know that the same amount was received from the sale of old furniture, then the suspense account will be regarded as a real account.
In another scenario, if the same amount is received for providing service to any client, then it is regarded as income, which is considered as a nominal account, therefore the suspense account will be regarded as a nominal account.
Therefore, from all these examples it can be concluded that the suspense account can be either personal, real or nominal based on the situation.
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Depending on the situation, a suspense account can be any type of account ( i.e personal, real or nominal account).
Let us understand this with the help of an example.
Ram had received an amount of Rs.2500 but was unable to determine from whom and on what basis it was received. Therefore, this amount will be credited to the suspense account.
Now, after a few days it came to the knowledge of Ram that this amount was paid by Shyam, then the suspense account is treated as a personal account.
Similarly, in a different scenario if Ram came to know that the same amount was received from the sale of old furniture, then the suspense account will be regarded as a real account.
In another scenario, if the same amount is received for providing service to any client, then it is regarded as income, which is considered as a nominal account, therefore the suspense account will be regarded as a nominal account.
Therefore, from all these examples it can be concluded that the suspense account can be either personal, real or nominal based on the situation.
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