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Share suspense account!

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Simran

Sr. Financial Analyst

21 Points Posted on 28 May 2018

Please can anybody detail -- What is Share Suspense Account? Also what does it mean or impact mean while studing a company's financials. Sintex Plastic has 12% in share suspense account and nothing in equities/shareholder capital in 2017 , I am assuming of the split from parent company Sintex. But what are the inferences one should make from an accountant stand point. Looking for answers from experts in this form. Thank you!

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Replies (1)

satish

teaching

2046 Points Posted on 30 May 2018

Share suspense account is a temprorary a/c created, to transfer any receipts on shares issue or re-issue (in case of forefeiture) is case of a pending decision regarding that receipt.
Eg: when re-issue is made in case of a forfeiture of share,
1. Bank a/c.....................................Dr.    XXX
To share suspense a/c                              XXX then after decision regarding reissue
2. share suspense a/c.................. Dr.    XXX
To share capital a/c                               XXX balance if any in share suspense will be paid of when it is not alloted...
3. share suspence a/c...................Dr.   XXX
To Bank a/c                                           XXX