Suspense Accounts

How do treat the following while preparing Balance  sheet 

Adjustment

1.Suspense A/c includes money advance to sales manager , who was sent to a business trip, he spent Rs.9000/- for miscellaneous expenses and balance is yet to be refund by  him. (Suspense A/c debit  Balance Rs.35,000/-)

Replies (3)
Quick Summary
This discussion explains how to treat suspense accounts when preparing a balance sheet. It focuses on clearing a suspense account that includes an advance to a sales manager for a business trip. The advice is to obtain documentary evidence for the expenses incurred and then clear the suspense account by debiting the expense account. If documentary evidence cannot be provided for the full amount, the remaining balance can be debited to the manager's imprest account or taken back.

You have to clear all suspense account before preparing Balance sheet . you can not finalized the accounts unless you clear suspense account .
1) Ask manager for Bills, cash memo, Invoices and any other documentary evidence to clear Rs 9000/.
Similarly you have to clear balance 26000/- lying in suspense account . After you getting all documentary evidence ( expense) for 35000/- . you pass following entry .

Expense A/c Dr 35000/-
To Suspense A/c Cr 35000/-
( clearance of suspense account )

you can clear suspense account in above manner , however you need documentary evidence to prepare Expense voucher .

You can get supporting documents for the total expense amount from the sales manager and the balance amount can be taken back otherwise the balance amount can be debited to Manager's Imprest Account.

I vaguely remember, suspense account was b/d to this year from previous in my question paper. Its IFRS/INDAS method.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details