CBSE Sample Papers

CBSE Sample Papers from CBSEtuts.com

Accountancy Class 11 – Suspense Account

April 27, 2019 by admin Leave a Comment

SUSPENSE ACCOUNT 

The accountant should take the above mentioned steps one after the other to locate the difference in the totals of the Trial Balance. In case, he is not in a position to locate the difference and he is in a hurry to close the books of accounts, he may transfer the difference to an accountknown as “Suspense Account”. Thus, Suspense Account is an account tjwhich the difference in the Thai Balance has been put temporarily. On locating the errors in the beginning or during the course of the next year, suitable accounting entries are passed (as explained later) and the Suspense Account is closed. However, it should be noted that Suspense Account should be opened by the accountant only when he has failed to locate the errors in spite of his best efforts. It should not be by way of a normal practice, because the very existence of the Suspense Account creates doubt about the authenticity of the books of accounts. The result shown by the books qf accounts may not be trusted by the proprietors, tax officials and other government authorities in such a case. This may create complications for the business.

Filed Under: Rectification of Errors Tagged With: accountancy class 11, Suspense Account

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • Note Making Class 11 CBSE Format, Examples
  • Unseen Passage For Class 11 Literary CBSE With Answers
  • Unseen Passage for Class 11 Discursive CBSE with Answers
  • Unseen Passage for Class 11 Factual CBSE With Answers
  • Rearrange Jumbled Sentences for Class 11 CBSE with Answers
  • Error Correction Exercises for Class 11 CBSE with Answers
  • Sentence Transformation Exercises for Class 11 CBSE with Answers
  • Editing Exercises for Class 11 CBSE with Answers
  • Active and Passive Voice Exercises for Class 11 with Answers CBSE
  • Tenses Exercises for Class 11 CBSE With Answers

Copyright © 2021 · Magazine Pro Theme on Genesis Framework · WordPress · Log in