var tribe_dropdowns = window.tribe_dropdowns || {};

( function( $, obj, _ ) {
	'use strict';

	obj.selector = {
		dropdown: '.tribe-dropdown',
		created: '.tribe-dropdown-created',
		searchField: '.select2-search__field',
	};

	// Setup a Dependent
	$.fn.tribe_dropdowns = function() {
		obj.dropdown( this, {} );

		return this;
	};

	obj.freefrom_create_search_choice = function( params ) {
		if ( 'string' !== typeof params.term ) {
			return null;
		}

		var term = params.term.trim();

		if ( '' === term ) {
			return null;
		}

		var args = this.options.options;
		var $select = args.$select;

		if (
			term.match( args.regexToken )
			&& (
				! $select.is( '[data-int]' )
				|| (
					$select.is( '[data-int]' )
					&& term.match( /\d+/ )
				)
			)
		) {
			var choice = { id: term, text: term, new: true };

			if ( $select.is( '[data-create-choice-template]' ) ) {
				choice.text = _.template( $select.data( 'createChoiceTemplate' ) )( { term: term } );
			}

			return choice;
		}

		return null;
	};

	/**
	 * Better Search ID for Select2, compatible with WordPress ID from WP_Query
	 *
	 * @param  {object|string} e Searched object or the actual ID
	 * @return {string}   ID of the object
	 */
	obj.search_id = function( e ) {
		var id = undefined;

		if ( 'undefined' !== typeof e.id ) {
			id = e.id;
		} else if ( 'undefined' !== typeof e.ID ) {
			id = e.ID;
		} else if ( 'undefined' !== typeof e.value ) {
			id = e.value;
		}
		return undefined === e ? undefined : id;
	};

	/**
	 * Better way of matching results
	 *
	 * @param  {string} term Which term we are searching for
	 * @param  {string} text Search here
	 * @return {boolean}
	 */
	obj.matcher = function( params, data ) {
		// If there are no search terms, return all of the data
		if ( 'string' !== typeof params.term || params.term.trim() === '') {
			return data;
		}

		// Do not display the item if there is no 'text' property
		if ( typeof data.text === 'undefined' ) {
			return null;
		}

		var term = params.term.trim();
		var text = data.text;
		var $select = $( data.element ).closest( 'select' );
		var args = $select.data( 'dropdown' );
		var result = text.toUpperCase().indexOf( term.toUpperCase() ) !== -1;

		if ( ! result && 'undefined' !== typeof args.tags ){
			var possible = _.where( args.tags, { text: text } );
			if ( args.tags.length > 0  && _.isObject( possible ) ){
				var test_value = obj.search_id( possible[0] );
				result = test_value.toUpperCase().indexOf( term.toUpperCase() ) !== -1;
			}
		}

		return result;
	};

	/**
	 * If the element used as the basis of a dropdown specifies one or more numeric/text
	 * identifiers in its val attribute, then use those to preselect the appropriate options.
	 *
	 * @param {object}   $select
	 * @param {function} make_selection
	 */
	obj.init_selection = function( $select, make_selection ) {
		var isMultiple = $select.is( '[multiple]' );
		var options = $select.data( 'dropdown' );
		var currentValues = $select.val().split( options.regexSplit );
		var selectedItems = [];

		$( currentValues ).each( function( index, value ) { // eslint-disable-line no-unused-vars
			var searchFor = { id: this, text: this };
			var data = options.ajax ? $select.data( 'options' ) : options.data;
			var locatedItem = find_item( searchFor, data );

			if ( locatedItem && locatedItem.selected ) {
				selectedItems.push( locatedItem );
			}
		} );

		if ( selectedItems.length && isMultiple ) {
			make_selection( selectedItems );
		} else if ( selectedItems.length ) {
			make_selection( selectedItems[ 0 ] );
		} else {
			make_selection( false );
			return;
		}
	};

	/**
	 * Searches array 'haystack' for objects that match 'description'.
	 *
	 * The 'description' object should take the form { id: number, text: string }. The first
	 * object within the haystack that matches one of those two properties will be returned.
	 *
	 * If objects contain an array named 'children', then that array will also be searched.
	 *
	 * @param {Object} description
	 * @param {Array}  haystack
	 *
	 * @return {Object|boolean}
	 */
	function find_item( description, haystack ) {
		if ( ! _.isArray( haystack ) ) {
			return false;
		}

		for ( var index in haystack ) {
			var possible_match = haystack[ index ];

			if ( possible_match.hasOwnProperty( 'id' ) && possible_match.id == description.id ) { // eslint-disable-line no-prototype-builtins,eqeqeq,max-len
				return possible_match;
			}

			if ( possible_match.hasOwnProperty( 'text' ) && possible_match.text == description.text ) { // eslint-disable-line no-prototype-builtins,eqeqeq,max-len
				return possible_match;
			}

			if ( possible_match.hasOwnProperty( 'children' ) && _.isArray( possible_match.children ) ) { // eslint-disable-line no-prototype-builtins,max-len
				var subsearch = find_item( description, possible_match.children );

				if ( subsearch ) {
					return subsearch;
				}
			}
		}

		return false;
	}

	obj.getSelectClasses = function( $select ) {
		var classesToRemove = [
			'select2-hidden-accessible',
			'hide-before-select2-init',
		];
		var originalClasses = $select.attr( 'class' ).split( /\s+/ );
		return _.difference( originalClasses, classesToRemove );
	};

	obj.element = function( field, args ) {
		var $select = $( field );
		var args = $.extend( {}, args ); // eslint-disable-line no-redeclare
		var carryOverData = [ // eslint-disable-line no-unused-vars
			'depends',
			'condition',
			'conditionNot',
			'condition-not',
			'conditionNotEmpty',
			'condition-not-empty',
			'conditionEmpty',
			'condition-empty',
			'conditionIsNumeric',
			'condition-is-numeric',
			'conditionIsNotNumeric',
			'condition-is-not-numeric',
			'conditionChecked',
			'condition-is-checked',
		];

		var $container;

		// Add a class for dropdown created
		$select.addClass( obj.selector.created.className() );

		// args.debug = true;

		// For Reference we save the jQuery element as an Arg.
		args.$select = $select;

		// Auto define the Width of the Select2.
		args.dropdownAutoWidth = true;
		args.width             = 'resolve';

		// CSS for the container
		args.containerCss = {};

		// Only apply visibility when it's a Visible Select2.
		if ( $select.is( ':visible' ) ) {
			args.containerCss.display  = 'inline-block';
			args.containerCss.position = 'relative';
		}

		// CSS for the dropdown
		args.dropdownCss = {};
		args.dropdownCss.width = 'auto';

		// When we have this we replace the default with what's in the param.
		if ( $select.is( '[data-dropdown-css-width]' ) ) {
			args.dropdownCss.width = $select.data( 'dropdown-css-width' );

			if ( ! args.dropdownCss.width || 'false' === args.dropdownCss.width ) {
				delete args.dropdownCss.width;
				delete args.containerCss;
			}
		}

		// By default we allow The field to be cleared
		args.allowClear = true;
		if ( $select.is( '[data-prevent-clear]' ) ) {
			args.allowClear = false;
		}

		// Pass the "Searching..." placeholder if specified
		if ( $select.is( '[data-searching-placeholder]' ) ) {
			args.formatSearching = $select.data( 'searching-placeholder' );
		}

		// If we are dealing with a Input Hidden we need to set the Data for it to work
		if ( ! $select.is( '[data-placeholder]' ) && $select.is( '[placeholder]' ) ) {
			args.placeholder = $select.attr( 'placeholder' );
		}

		// If we are dealing with a Input Hidden we need to set the Data for it to work.
		if ( $select.is( '[data-options]' ) ) {
			args.data = $select.data( 'options' );
		}

		// With less then 10 args we wouldn't show the search.
		args.minimumResultsForSearch = 10;

		// Prevents the Search box to show
		if ( $select.is( '[data-hide-search]' ) ) {
			args.minimumResultsForSearch = Infinity;
		}

		// Makes sure search shows up.
		if ( $select.is( '[data-force-search]' ) ) {
			delete args.minimumResultsForSearch;
		}

		// Allows freeform entry
		if ( $select.is( '[data-freeform]' ) ) {
			args.createTag = obj.freefrom_create_search_choice;
			args.tags = true;
			$select.data( 'tags', true );
		}

		if ( $select.is( '[multiple]' ) ) {
			args.multiple = true;

			// Set the max select items, if defined
			if ( $select.is( '[data-maximum-selection-size]' ) ) {
				args.maximumSelectionSize = $select.data( 'maximum-selection-size' );
			}

			// If you don't have separator, add one (comma)
			if ( ! $select.is( 'data-separator' ) ) {
				$select.data( 'separator', ',' );
			}

			if ( ! _.isArray( $select.data( 'separator' ) ) ) {
				args.tokenSeparators = [ $select.data( 'separator' ) ];
			} else {
				args.tokenSeparators = $select.data( 'separator' );
			}
			args.separator = $select.data( 'separator' );

			// Define the regular Exp based on
			args.regexSeparatorElements = [ '^(' ];
			args.regexSplitElements = [ '(?:' ];
			$.each( args.tokenSeparators, function ( i, token ) {
				args.regexSeparatorElements.push( '[^' + token + ']+' );
				args.regexSplitElements.push( '[' + token + ']' );
			} );
			args.regexSeparatorElements.push( ')$' );
			args.regexSplitElements.push( ')' );

			args.regexSeparatorString = args.regexSeparatorElements.join( '' );
			args.regexSplitString = args.regexSplitElements.join( '' );

			args.regexToken = new RegExp( args.regexSeparatorString, 'ig' );
			args.regexSplit = new RegExp( args.regexSplitString, 'ig' );
		}

		// Select also allows Tags, so we go with that too
		if ( $select.is( '[data-tags]' ) ) {
			args.tags = $select.data( 'tags' );

			args.createSearchChoice = function( term, data ) { // eslint-disable-line no-unused-vars
				if ( term.match( args.regexToken ) ) {
					return { id: term, text: term };
				}
			};

			if ( 0 === args.tags.length ) {
				args.formatNoMatches = function() {
					return $select.attr( 'placeholder' );
				};
			}
		}

		// When we have a source, we do an AJAX call
		if ( $select.is( '[data-source]' ) ) {
			var source = $select.data( 'source' );

			// For AJAX we reset the data
			args.data = { results: [] };

			// Format for Parents breadcrumbs
			args.formatResult = function ( item, container, query ) { // eslint-disable-line no-unused-vars,max-len
				if ( 'undefined' !== typeof item.breadcrumbs ) {
					return $.merge( item.breadcrumbs, [ item.text ] ).join( ' » ' );
				}

				return item.text;
			};

			// instead of writing the function to execute the request we use Select2's convenient helper.
			args.ajax = {
				dataType: 'json',
				type: 'POST',
				url: obj.ajaxurl(),

				// parse the results into the format expected by Select2.
				processResults: function ( response, page, query ) { // eslint-disable-line no-unused-vars
					if ( ! $.isPlainObject( response ) || 'undefined' === typeof response.success ) {
						console.error( 'We received a malformed Object, could not complete the Select2 Search.' ); // eslint-disable-line max-len
						return { results: [] };
					}

					if (
						! $.isPlainObject( response.data )
						|| 'undefined' === typeof response.data.results
					) {
						console.error( 'We received a malformed results array, could not complete the Select2 Search.' ); // eslint-disable-line max-len
						return { results: [] };
					}

					if ( ! response.success ) {
						if ( 'string' === $.type( response.data.message ) ) {
							console.error( response.data.message );
						} else {
							console.error( 'The Select2 search failed in some way... Verify the source.' );
						}
						return { results: [] };
					}

					return response.data;
				},
			};

			// By default only send the source
			args.ajax.data = function( search, page ) {
				return {
					action: 'tribe_dropdown',
					source: source,
					search: search,
					page: page,
					args: $select.data( 'source-args' ),
				};
			};
		}

		// Attach dropdown to container in DOM.
		if ( $select.is( '[data-attach-container]' ) ) {

			// If multiple, attach container without search.
			if ( $select.is( '[multiple]' ) ) {
				$.fn.select2.amd.define(
					'AttachedDropdownAdapter',
					[
						'select2/utils',
						'select2/dropdown',
						'select2/dropdown/attachContainer',
					],
					function( utils, dropdown, attachContainer ) {
						return utils.Decorate( dropdown, attachContainer );
					}
				);

				args.dropdownAdapter = $.fn.select2.amd.require( 'AttachedDropdownAdapter' );

			// If not multiple, attach container with search.
			} else {
				$.fn.select2.amd.define(
					'AttachedWithSearchDropdownAdapter',
					[
						'select2/utils',
						'select2/dropdown',
						'select2/dropdown/search',
						'select2/dropdown/minimumResultsForSearch',
						'select2/dropdown/attachContainer',
					],
					function( utils, dropdown, search, minimumResultsForSearch, attachContainer ) {
						var adapter = utils.Decorate( dropdown, attachContainer );
						adapter = utils.Decorate( adapter, search );
						adapter = utils.Decorate( adapter, minimumResultsForSearch );
						return adapter;
					}
				);

				args.dropdownAdapter = $.fn.select2.amd.require( 'AttachedWithSearchDropdownAdapter' );
			}
		}

		// Save data on Dropdown
		$select.data( 'dropdown', args );

		$container = $select.select2TEC( args );

		// Propagating original input classes to the select2 container.
		$container.data( 'select2' ).$container.addClass( obj.getSelectClasses( $select ).join( ' ' ) );

		// Propagating original input classes to the select2 container.
		$container.data( 'select2' ).$container.removeClass( 'hide-before-select2-init' );

		$container.on( 'select2:open', obj.action_select2_open );

		/**
		 * @todo @bordoni Investigate how and if we should be doing this.
		 *
		if ( carryOverData.length > 0 ) {
			carryOverData.map( function( dataKey ) {
				var attr = 'data-' + dataKey;
				var val = $select.attr( attr );

				if ( ! val ) {
					return;
				}

				this.attr( attr, val );
			}, $container );
		}
		 */
	};

	obj.ajaxurl = function() {
		if ( 'undefined' !== typeof window.ajaxurl ) {
			return window.ajaxurl;
		}

		if ( 'undefined' !== typeof TEC && 'undefined' !== typeof TEC.ajaxurl ) {
			return TEC.ajaxurl;
		}

		console.error( 'Dropdowns framework cannot properly do an AJAX request without the WordPress `ajaxurl` variable setup.' ); // eslint-disable-line max-len
	};

	obj.action_select2_open = function( event ) { // eslint-disable-line no-unused-vars
		var $select = $( this );
		var select2Data = $select.data( 'select2' );
		var $search = select2Data.$dropdown.find( obj.selector.searchField ); // eslint-disable-line es5/no-es6-methods,max-len

		select2Data.$dropdown.addClass( obj.selector.dropdown.className() );

		// If we have a placeholder for search, apply it!
		if ( $select.is( '[data-search-placeholder]' ) ) {
			$search.attr( 'placeholder', $select.data( 'searchPlaceholder' ) );
		}
	};

	/**
	 * Configure the Drop Down Fields
	 *
	 * @param  {jQuery} $fields All the fields from the page
	 * @param  {array}  args    Allow extending the arguments
	 *
	 * @return {jQuery}         Affected fields
	 */
	obj.dropdown = function( $fields, args ) {
		var $elements = $fields.not( '.select2-offscreen, .select2-container, ' + obj.selector.created.className() ); // eslint-disable-line max-len

		if ( 0 === $elements.length ) {
			return $elements;
		}

		// Default args to avoid Undefined
		if ( ! args ) {
			args = {};
		}

		$elements
			.each( function( index, element ) {
				// Apply element to all given items and pass args
				obj.element( element, args );
			} );

		// return to be able to chain jQuery calls
		return $elements;
	};

	$( function() {
		$( obj.selector.dropdown ).tribe_dropdowns();
	} );

	// Addresses some problems with Select2 inputs not being initialized when using a browser's "Back" button.
	$( window ).on( 'unload', function() {
		$( obj.selector.dropdown ).tribe_dropdowns();
	});

} )( jQuery, tribe_dropdowns, window.underscore || window._ );
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                                                <div class="category-badge mb-2"><a href="https://www.premills.com/category/bookkeeping/" class="badge bg-secondary">Bookkeeping</a></div>                        <h1>Suspense account definition</h1>                        <p class="entry-meta">
                            <small class="text-muted">
                                <span class="posted-on"><span rel="bookmark"><time class="entry-date published" datetime="2024-04-03T21:07:12+05:30">April 3, 2024</time> <span class="time-updated-separator">/</span> <time class="updated" datetime="2025-05-14T21:07:56+05:30">May 14, 2025</time></span></span> by <a href="https://www.premills.com/author/admin-2/" title="Posts by admin" rel="author">admin</a> | <i class="far fa-comments"></i> <span class="comments-link"><a href="https://www.premills.com/suspense-account-definition/#respond">Leave a comment</a></span>                            </small>
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                        <p><img decoding="async"  style='display: block;margin-left:auto;margin-right:auto;'  width="250px" alt="suspense account definition" data-src="https://www.bookstime.com/wp-content/uploads/2020/10/fica-tax-2020-visual-min-300x200.jpg" class="wp-post-image lazyload" src="data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==" /><noscript><img decoding="async" class='wp-post-image' style='display: block;margin-left:auto;margin-right:auto;' src="https://www.bookstime.com/wp-content/uploads/2020/10/fica-tax-2020-visual-min-300x200.jpg" width="250px" alt="suspense account definition"/></noscript></p>
<p>For example, sender sends payment from US ACH account to a BB mobile number in Japan. The customer receives an alert on their mobile to withdraw this money from a BB agent. Until they withdraw, the remittance stays in a suspense account, earning the financial institute or the BB enabler float/interest on that money. When customer withdrawal is completed, the money moves from the suspense account to the account of the agent who facilitated the cash withdrawal. The most important point to understand is that transactions are recorded in the suspense account only temporarily and need to be relocated to their correct permanent accounts as soon as possible. These potentially incorrect financial transactions are either initially recorded in the suspense account, or moved from the general ledger into the suspense account.</p>
<p><img decoding="async"  style='display: block;margin-left:auto;margin-right:auto;'  width="253px" alt="suspense account definition" data-src="https://www.bookstime.com/wp-content/uploads/2021/08/d0cf1e9e4c.jpg" class="aligncenter lazyload" src="data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==" /><noscript><img decoding="async" class='aligncenter' style='display: block;margin-left:auto;margin-right:auto;' src="https://www.bookstime.com/wp-content/uploads/2021/08/d0cf1e9e4c.jpg" width="253px" alt="suspense account definition"/></noscript></p>
<h2>Transaction Matching</h2>
<ul>
<li>It is used to temporarily store transactions that are uncertain or incomplete until they can be properly classified and recorded in the general ledger.</li>
<li>They also contribute to the overall transparency of accounting processes by allowing for proper investigation and reconciliation of problematic items.</li>
<li>A mortgage suspense account is a specific type of suspense account used in the world of home loans and mortgages.</li>
<li>A company’s general ledger needs to show all of your organisation’s financial accounts, including your suspense account.</li>
<li>The use of a mortgage suspense account helps ensure that payments are not misapplied or remain unaccounted for while processing.</li>
<li>At times, all the required details for a particular transaction are not available but it still needs to be recorded in order to keep the accounting books updated.</li>
</ul>
<p>Therefore, transactions in the suspense account should be cleared regularly and as soon as possible. The suspense account provides a place for accountants to temporarily log and track incomplete transactions until more information is obtained. Investing and brokerage suspense accounts temporarily hold investors’ funds until the money is allocated towards the purchase of new investments. Suspense accounts are commonly used when there is no paper trail for the transaction or the nature of it hasn’t been informed yet. Nevertheless, the size of these accounts should be fairly small since most transactions are easily categorized in a regular business operation. A company receives a payment paid into their bank account, but the transaction doesn’t have any reference details to be able to identify what the payment is for.</p>
<p><img decoding="async"  style='display: block;margin-left:auto;margin-right:auto;'  width="256px" alt="suspense account definition" data-src="https://www.bookstime.com/wp-content/uploads/2021/06/c15cb2f2-4a6e-4f8c-ac63-0b99e09b1d06-300x200.jpg" class="aligncenter lazyload" src="data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==" /><noscript><img decoding="async" class='aligncenter' style='display: block;margin-left:auto;margin-right:auto;' src="https://www.bookstime.com/wp-content/uploads/2021/06/c15cb2f2-4a6e-4f8c-ac63-0b99e09b1d06-300x200.jpg" width="256px" alt="suspense account definition"/></noscript></p>
<h2>What is a suspense balance mortgage?</h2>
<p><img decoding="async"  style='display: block;margin-left:auto;margin-right:auto;'  width="252px" alt="suspense account definition" data-src="https://www.bookstime.com/wp-content/uploads/2020/08/shutterstock_104065367-491x450.jpg" class="aligncenter lazyload" src="data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==" /><noscript><img decoding="async" class='aligncenter' style='display: block;margin-left:auto;margin-right:auto;' src="https://www.bookstime.com/wp-content/uploads/2020/08/shutterstock_104065367-491x450.jpg" width="252px" alt="suspense account definition"/></noscript></p>
<p>This documentation is essential for validating the transaction’s legitimacy and for satisfying the requirements of a thorough audit trail. When sufficient information becomes available, the entry is reclassified to the appropriate ledger account. For instance, an unidentified payment identified as a customer invoice settlement is moved from the suspense account to accounts receivable.</p>
<ul>
<li>The suspense account is situated on the general ledger and is used to temporarily store specific transaction amounts.</li>
<li>Students should know that the problem will not be solved by just making the trial balance agree with the help of a suspense account.</li>
<li>While other trial balance errors do exist (e.g., error of omission, commission, principle, original entry, reversal of entries), they do not affect the suspense account.</li>
<li>Suspense accounts help to prevent errors in final financial statements and ensures that transactions are accurately recorded.</li>
<li>The unreconciled differences are placed in suspense accounts until the underlying causes are investigated and resolved, at which point the balances can be adjusted to reconcile the accounts accurately.</li>
<li>When a business receives a payment that cannot be immediately matched to an outstanding invoice or customer account, a suspense account can be used to hold the payment until the reconciliation can be made.</li>
</ul>
<h2>Credit Risk Management</h2>
<p><img decoding="async"  style='display: block;margin-left:auto;margin-right:auto;'  width="252px" alt="suspense account definition" data-src="https://www.bookstime.com/wp-content/uploads/2021/05/15d9b0d8-0f44-40ae-b510-e01de7bfa274-300x170.jpg" class="aligncenter lazyload" src="data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==" /><noscript><img decoding="async" class='aligncenter' style='display: block;margin-left:auto;margin-right:auto;' src="https://www.bookstime.com/wp-content/uploads/2021/05/15d9b0d8-0f44-40ae-b510-e01de7bfa274-300x170.jpg" width="252px" alt="suspense account definition"/></noscript></p>
<p>The IDC report highlights HighRadius’ integration of machine learning across its AR products, enhancing payment matching, credit management, and cash forecasting capabilities. In this blog, we will demystify what suspense accounts are, explore different types, and dive into examples that bring these concepts to life. You will also understand the potential <a href="https://www.bookstime.com/articles/suspense-account">suspense account definition</a> challenges of using a suspense account and how you can combat those challenges. CAs, experts and businesses can get GST ready with Clear GST software &amp; certification course. Our GST Software helps CAs, tax experts &amp; business to manage returns &amp; invoices in an easy manner.</p>
<p><img decoding="async"  style='display: block;margin-left:auto;margin-right:auto;'  width="257px" alt="suspense account definition" data-src="https://www.bookstime.com/wp-content/uploads/2021/08/shutterstock_115791079-300x200.jpg" class="aligncenter lazyload" src="data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==" /><noscript><img decoding="async" class='aligncenter' style='display: block;margin-left:auto;margin-right:auto;' src="https://www.bookstime.com/wp-content/uploads/2021/08/shutterstock_115791079-300x200.jpg" width="257px" alt="suspense account definition"/></noscript></p>
<ul>
<li>Identifying an amount shouldn’t be an impossible task (if so, it may suggest fraud).</li>
<li>The process of resolving entries in a suspense account is methodical, requiring diligent examination of each transaction to determine its rightful place in the financial records.</li>
<li>Let’s suppose you have been alerted that a remittance someone sent you from abroad is ready for withdrawal.</li>
<li>In situations involving complex financial transactions or unique circumstances, it can be challenging to determine the appropriate accounts to record the entries promptly.</li>
</ul>
<p>Regular and timely reconciliation activities can minimize the need for suspense accounts by ensuring the accuracy and completeness of financial records. <a href="https://x.com/BooksTimeInc/status/1917948315288957240">Accounting for Technology Companies</a> Students should know that the problem will not be solved by just making the trial balance agree with the help of a suspense  account. This is a forced agreement, and the errors still exist in the books of accounts. A suspense account is created only to avoid the further delay in the preparation of final accounts. In the next period, the books of accounts will be thoroughly checked, errors will be detected and rectified, and the profit for the previous period will be adjusted accordingly.</p>
<ul>
<li>This is a forced agreement, and the errors still exist in the books of accounts.</li>
<li>Suspense accounts serve as temporary holding areas for transactions that cannot be immediately classified.</li>
<li>A suspension account is an account used for any expenditure or balance that can not be established temporarily.</li>
<li>There are times when the company receives money even before they make a contract or a policy.</li>
<li>The amount of money held in suspense account is referred to as the &#8220;suspense balance.&#8221;</li>
</ul>
<h2>Treasury Management</h2>
<div style='text-align:center'><iframe width='567' height='317'  frameborder='0' alt='suspense account definition' allowfullscreen data-src='https://www.youtube.com/embed/a_PXiTW7e14' class='lazyload' src='data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw=='></iframe></div>
<p>However, all transactions require complete and accurate information before they can be entered into the financial records. Another instance in which having a suspense account comes in handy is when a trial balance is out of balance, meaning the debit and credit columns do not match. When an accounting error is identified, such as a misclassification of expenses, the incorrect entry would be moved to a suspense account while the error <a href="https://en.wikipedia.org/wiki/Sales_(accounting)">net sales</a> is investigated and  then ultimately corrected.</p>
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