Clarification for suspense account

This query is : Resolved

AshishLimaye (Querist)
Follow

22 December 2013 While reconciling it was observed that
In case of one party bills booked on time but not paid for two years. However party not asked for payment for that specific bill.Then can we put that bills in suspense. Other wise rest account is reconciled. if yes should we put in suspense in current year because balance sheet of previous yr is finalized. Let me know accounting treatment. Also let me know if there is any other alternative accounting treatment

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

22 December 2013 how does that matter whether the other party asked for payment or not. it will remain as a liability. I fail to understand how can it result in non-balancing of the books.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now