Consequently at the end of each accounting period the business carries out a suspense account reconciliation. Any balance is investigated so that correcting adjustments can be made before the final financial statements are issued. Accordingly irrespective of the issue resulting in the suspense account posting, at the end of the accounting period the account balance reduces to zero with correcting journal entries. suspense account in balance sheet A suspense account can be credited or debited when you are aware of one side of the payment but not the other side. QuickBooks suspense account is useful to avoid recording transactions in the wrong account. For efficiency purposes, it is also helpful to track and analyze the entries over time to minimize the reoccurrence of any transactions that cause frequent unnecessary postings into the suspense account. Ask a Financial Professional Any Question It ensures the balance sheet remains accurate while details are clarified or adjustments are made. Reasonable efforts are made to maintain accurate information, though all credit card information is presented without warranty. When you click on any ‘Apply Now’ button, the most up-to-date terms and conditions, rates, and fee information will be presented by the issuer. Credit Card Insider has […]