Balance Sheets

Under what head suspence and misc. expenses should be shown in balance sheet
Replies (2)
Quick Summary
This discussion clarifies how to present suspense and miscellaneous expenses on a balance sheet. Suspense accounts, used for unknown income or expenses, can appear as either an asset or liability depending on their nature, but should ideally be resolved before finalising accounts. Miscellaneous expenses that are due to be written off in future years are shown on the asset side under 'expenses not written off', such as preliminary expenses. While a suspense account isn't typically shown directly, it's adjusted to relevant accounts or placed on the asset/liability side if the transaction remains unidentifiable.

1) If  we do not know any expense   or  Income  ( either Capital or revenue )   put  under suspense . it  depends up on Income or expense , so suspense account will be either Asset  to liability  in the Balance sheet  

Suspense account  must  clear before finalization  of  Accounts 

 

For  Example  - Expense we do not know                        

Suspense A/c  Dr 

To  Bank   A/c  Cr 

( payment of expense )  Suspense account will be under Asset  side 

latter we comes to know its  printing expense 

Then pass entry 

Printing   A/c    Dr 

To  Suspense   A/c  Cr 

( expense accounted ) 

 

2) if your query is  about Mics Expense which are suppose to written-off in the  Coming  year but not written off   also will be on the Asset  side  of  the balance sheet  under the head  expense not written- off . Example  is  preliminary  expenses , Shares and  Debenture issue expense , underwriting  commission etc. 

 

A suspense account is not shown in the balance sheet but adjusted off to relevant accounts. But if they can’t sort out the transaction, it can be shown anywhere for example, if there is suspense in asset side, it is shown there, if there is suspense in liabilities, it is shown there.

Misc. expenses falls under imprest accounting also know as petty cash book. Petty cash book is current asset also know as cash in hand, and what is expensed is recognised in the income statements.

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