Travel advance

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SOWMYA (Querist)

30 April 2013 WHAT IS THE ENTRY FOR THE TRAVEL ADVANCE GIVEN?
IS THE BELOW ENTRY IS CORRECT
SUSPENSE A/C DR
TO CASH A/C

AND UPON KNOWING THE ACTUAL AMOUNT
TRAVEL EXPENSES A/C
TO SUSPENSE A/C

DOES THE COMPANIES USE SUSPENSE ACCOUNT IN ITS BOOKS OF ACCOUNT? IF SO TELL ME THE OTHER INSTANCES WHERE SUSPENSE A/C IS USED

PLEASE
THANKS IN ADVANCE

CA. RICHI SAXENA

CA. RICHI SAXENA (Expert)

30 April 2013 SUSPENSE ACCOUNT IS NOT USED UNTILL THE FINANCIAL YEAR ENDS AND THE BOOKS OF ACCOUNTS ARE CLOSED.
AS FAR AS YOUR ENTRIES ARE CONCERNED THE ENTRY SHOULD BE AS GIVEN BELOW:-

ADVANCE TO TRANSPORT/TRAVELLING ADVANCES DR
TO CASH/BANK A/C

AND AS AND WHEN THE ACTUAL AMOUNT IS KNOWN THEN THE ACTUAL EXPENSES SHOULD BE ADJUSTED WITH THE ADVANCES ACCOUNT USED.

CA. RICHI SAXENA

CMA Sandip Sharma

CMA Sandip Sharma (Expert)

01 May 2013 Richi Is Right. Suspense A/C does't have any space in accounts. Journal is already given by her so i am just showing you adjustment entry of given advance.
Travelling Exp Dr.
Bank A/C Dr ( Only if excess amt taken back)
Travelling Adv A/C Cr.
Bank A/C Cr ( Only if Adv Fall Short)

SOWMYA

SOWMYA (Querist)

01 May 2013 THANK YOU BOTH OF YOU VERY MUCH

IT IS TOLD THAT SUSPENSE ACCOUNT IS USED ONLY AFTER THE BOOKS ARE CLOSED.

CAN YOU PLEASE GIVE ME THE EXAMPLE WHERE THE SUSPENSE ACCOUNT IS USED

CA. RICHI SAXENA

CA. RICHI SAXENA (Expert)

01 May 2013 SUSPENSE ACCOUNT IS USED WHEN THE TOTALS OF THE TRIAL BALANCE DOES NOT MATCH OR TALLY WITH EACH OTHER. A SUSPENSE ACCOUNT IS OPENED TO MATCH THE TRIAL BALANCE AND THEN THE CORRECTION ENTRIES ARE PASSED TO WRITE OFF THE SUSPENSE ACCOUNT

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