When do you open a suspense account? Explain its uses.

1.	When do you open a suspense account? Explain its uses.
Answer» When all attempts fails to locate errors and the preparation of the final accounts can not be further delayed, the difference in the trial balance is temporarily transferred to an account called “suspense account’’. Uses of suspense Account. 1. It facilitates the preparation of financial statements even when the trial balance has not tallied. 2. It helps in giving rectifying entries after the preparation of trial balance.

Answer»

When all attempts fails to locate errors and the preparation of the final accounts can not be further delayed, the difference in the trial balance is temporarily transferred to an account called “suspense account’’. Uses of suspense Account.

1. It facilitates the preparation of financial statements even when the trial balance has not tallied.

2. It helps in giving rectifying entries after the preparation of trial balance.

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When do you open a suspense account? Explain its uses.

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