Suspense account

This refers to the accounting convention of posting unclassified transactions until they can be confirmed.

Unclassified transactions are usually kept in the suspense account until a decision has been made to their appropriate classification. For example, it may not be possible to immediately identify the relevant account for a receipt into the bank where the payee has not provided a proper reference number.

Suspense accounts is a term normally found in financial accounting. Explore our learning zone to discover more

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