Start learning 50% faster. Sign in now
A Suspense Account is typically opened when there are discrepancies or errors in the accounting records that prevent the immediate and accurate posting of a transaction. It acts as a temporary placeholder to hold the difference until the correct information is available or the discrepancy is resolved. Suspense Accounts are usually used in the following situations: Accounting Errors: When errors are detected in the accounting entries, but the exact correction is not immediately evident, a Suspense Account is used to hold the difference until the error can be identified and rectified. Timing Differences: In some cases, transactions may occur near the end of an accounting period, and the necessary information to record them accurately may not be available in time. In such situations, a Suspense Account is used temporarily until the correct data is received. Missing Information: If there is missing information required to complete an accounting entry, a Suspense Account is used to hold the partial entry until the missing information is obtained. Bank Reconciliation: When a bank reconciliation is performed, and there are discrepancies between the company's records and the bank statement, a Suspense Account may be used to temporarily hold the difference until the reconciliation is completed. Once the discrepancies or errors are identified and resolved, the amounts in the Suspense Account are transferred to their appropriate accounts, and the Suspense Account balance becomes zero. It is important to investigate and clear Suspense Accounts regularly to ensure accurate financial reporting.
As per Evidence Act, When the court regards a fact as proved, unless and until it is disproved, or call for proof of it, this is called
A is accused of murder of B by pistol alleged to by purchased on 10 August at Lucknow. A makes statement that on 10 August he was at Bhopal not at Luckn...
A Public Company is a company which has a minimum paid-up share capital ____________
Which section of the consumer protection act 2019 establishes “Consumer mediation cell” attached to each commission?
The term ‘Admission’ is defined in the Indian Evidence Act, 1872 is______.
When words have a latent meaning or a double meaning, then it is defamatory. This is called _______.
A agrees, in writing, to sell a horse to B for “Rs. 1,000 or Rs. 1,500”.
What does "election" mean as per the definition given under the Prevention of Corruption Act?
Which of the following constitutes Cheating as per S. 420 of IPC?
As per the IRDA Act, 1999 the Authority shall maintain proper accounts and other relevant records and prepare an annual statement of accounts in such fo...