Question

In installment purchase accounting why interest suspense is opened

Answer 1

Interest in suspense is a particular kind of asset that may appear on a company's -- or even an individual's – balance sheet. It often denotes that a company has money due as the result of a loan, but that its borrower has not paid on the loan per an agreement.

Answer 2

Answer:

When transactions or event happen, we record them. In this method, we open interest suspense account. All the interest which is not paid on hire purchase asset will go to interest suspense account. When interest will become due, interest account will be debit and interest suspense account will credit.