Suspence Accounts

This query is : Resolved

Share Report Follow Query Ask a Query

monia

monia (Querist)
Follow

06 July 2011 Can Suspence account impact on P&L account? if yes how please suggest

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

06 July 2011 If you have created a suspense account and the group has been given as current assets or current liabilities then all debits and credits shall be reflected in the Balance Sheet either in the Assets side or in the Liabilities side.

Now suppose an item of expense which has no details and you have booked under suspense account then it will show as an asset whereas it is an expenses. Hence your expenses shall be understated and profit overstated. Likewise several items of P & L are passed the profitability shall effect.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
Follow

06 July 2011 agree with mr s s agarwal

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Ishwar Radhakisan Tawani

Lalan Kumar Jha

Kalyan Guha

Rajat Khandelwal

Sanoj T

Subscribe Now

Suspence Accounts

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANCY

CA Final

Article Assistant

Manager- Finance and Compliance

GST CONSULTANT

Accountant