I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

 

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2.12 Suspense accounts are temporary 

Suspense accounts are only temporary. None should exist when it comes to drawing up the financial 

statements at the end of the accounting period.   

It must be stressed that a suspense account can only be temporary. Postings to a suspense account are 

only made when the bookkeeper doesn't yet know what to do, or when an error has occurred. Mysteries 

must be solved, and errors must be corrected. Under no circumstances should there still be a suspense 

account when it comes to preparing the statement of financial position of a business. The suspense 

account must be cleared and all the correcting entries made before the final accounts are drawn up. 

This question is quite comprehensive. See if you can tackle it.