What do you mean by suspense account, Financial Accounting

Assignment Help:

Q. What do you mean by suspense account? How are errors in accounting classified?

Suspense account: A suspense account is an account, which is opened when the trail balance does not tally, and in which the difference in the trail balance is entered to tally the trail balance. It is an account that is used to store short term funds until a present decision is made about their allocation. A suspense account is a temporary resting place for an entry that will end up somewhere else once its final destination is determined. 

Classification of Errors:

1. Error of omission 

2. Error of commission 

3. Error of principle

4. Compensating errors

5. Errors of duplication


Related Discussions:- What do you mean by suspense account

Cash budget, What is a cash budget? How it is useful in managerial decision...

What is a cash budget? How it is useful in managerial decision making?

Case study, Dawn's new car has a FMV of $20,000 and it weighs 3,000 pounds....

Dawn's new car has a FMV of $20,000 and it weighs 3,000 pounds. The county also assessed a property tax on the car. The tax was 2% of its FMV and $10 per hundred weight. The car is

Khyber bank, how we write a literature review

how we write a literature review

Determine the price of stock and profit, First's current stock price is $26...

First's current stock price is $260. The price may rise to $300 or fall to $170 in one month. The risk-free interest rate is 18% per year. a. Using the replication portfolio app

605, I am working on the comprehensive probelm and I can not figure out the...

I am working on the comprehensive probelm and I can not figure out the trial balance. Where am I going wrong?

Problem on balance sheet, Problem on balance sheet: At the beginning of ...

Problem on balance sheet: At the beginning of 20X2, Dahl Ltd. acquired 8% of the outstanding common shares of Tippy Ltd. for $400,000. This amounted to 80,000 shares.  At th

What to debit and credit?, My company agreed to clean a store for $1,375 pe...

My company agreed to clean a store for $1,375 per month. A check for $700 was received from the store as a deposit. What do I need to debit and credit in a general ledger?

Use the multi factor productivity ratio, Alyssa's Custom Cakes currently se...

Alyssa's Custom Cakes currently sells 5 birthday, 2 wedding, and 3 specialty cakes each month for $50, $150, and $100 each, respectively.. The cost of labor is $50 per hour includi

Determine income statement and balance sheet, Prepare an Excel spreads...

Prepare an Excel spreadsheet containing the following: - Construct the next five-year pro-forma statements (income statement and balance sheet). - Estimate annual F

Kannan, ACC2200 Financial Accounting Assignment Trimester 2, 2013 DUE DATE...

ACC2200 Financial Accounting Assignment Trimester 2, 2013 DUE DATE: Monday, 9th September 2013 VALUE: 15% of OVERALL ASSESSMENT REQUIRED: (1) This research question consists of a

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd