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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › how can suspense account be created in this entry?
a cash refund of $50 given to a customer had been credited to
purchases
It should have been debited somewhere (to which account depends on why the refund was given).
Therefore at the moment the debit side of the trial balance will be $50 too low and the credit side will be $50 too high. Therefore a suspense account will be created with a debit balance of $100.