How suspense account is open and why it is closed explain in breif
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What Is a Suspense Account, Why Is It Opened & How Is It Closed?
by Karen Rogers; Updated January 25, 2019
What Is a Suspense Account, Why Is It Opened & How Is It Closed?
Suspense accounts are used when your trial balance is out of balance or when you have an unidentified transaction. The suspense account is a general ledger account that acts as a holding account until the error is discovered or the unknown transaction is identified. When working with the trial balance, you can open one suspense account to hold all of the discrepancies until you find them. However, suspense accounts are temporary accounts that must be closed by the end of your accounting cycle.
The suspense account is a general ledger account that acts as a holding account until the error is discovered or the unknown transaction is identified. When working with the trial balance, you can open one suspense account to hold all of the discrepancies until you find them.