Question

What is suspense account why is it opened and how is it closed explain?

Answer 1

Answer:

Explanation:

A suspense account is a holding account found in the general ledger. Depending on the transaction in question, a suspense account can be an asset or liability.

If it’s an asset in question, the suspense account is a current asset because it holds payments related to accounts receivable. A suspense account could also be a liability if it holds accounts payables that you don’t know how to classify.A trial balance is the closing balance of an account that you calculate at the end of the accounting period. When debits and credits don’t match, hold the difference in a suspense account until you correct it.