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Suspense account

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Suspense account

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.
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  • January 19, 2016 at 10:01 pm #296437
    Abror
    Member
    • Topics: 75
    • Replies: 38
    • ☆☆

    Good evening Mr John…In suspense account lecture part b, you solved the question example in which there’s imbalance of debits and credits…And you put difference on credit side of suspense account which seemed so confusing because I think debit side is higher so we need to put difference balance on debit side…
    Difference is 4957 …I would put it on debit side of suspense account so that it could remind me debits are higher than credit as in question…
    Why did you put difference on credit side? Thanks

    January 20, 2016 at 8:16 am #296517
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54832
    • ☆☆☆☆☆

    If the debits are higher than the credits, then we need an extra credit on the suspense account so that then the total debits are equal to the total credits.

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