What Is a Suspense Account?

Suspense accounts, also called pending accounts, are accounts that are used to account for and monitor certain economic operations that are difficult to determine for a while. Obviously, a suspense account is a transitional account, and once it determines that it should borrow or loan an account, it should be transferred.

Suspense account

Right!

Suspense accounts, also called pending accounts, are accounts that are used to account for and monitor certain economic operations that are difficult to determine for a while. Obviously, a suspense account is a transitional account, and once it determines that it should borrow or loan an account, it should be transferred.

Chinese name

Suspense account

Foreign name

suspense accounts

Types of

Basis of Accounting

Species

Suspense

Claim

After reporting for approval in accordance with regulations

Because the account to be recorded can only be determined after it has been submitted for approval in accordance with the regulations, it must be temporarily recorded in the "Profits and Losses Pending Property" account. The account's debit registration accounted for losses and damages of pending property inventory and the number of pending property inventory approvals for resale, the lender's registration of the pending property inventory number and the pending property inventory losses and damages approved for resale; the borrower The balance indicates the difference between the number of plate losses and damages that have not yet been approved for processing and the number of disk surpluses, and the credit balance indicates the difference between the number of plate surpluses that have not yet been approved for processing and the number of disk losses or damages. In order to reflect the profit and loss of current assets and fixed assets separately, two detailed classified accounts of pending current asset gains and losses and pending fixed asset gains and losses should be set up under this account.

The content of the account of the "property gains and losses to be processed" account can also be reflected by the establishment of a "property loss to be processed" account and a "pending profit of pending assets" account. On this basis, the four detailed classification accounts of loss of pending fixed assets, loss of pending current assets, profit of pending fixed assets, and profit of pending current assets are set.

In addition, there is another view that a suspense account is a transitional account that must periodically transfer its calculated costs to other accounts; or pool the costs transferred from other accounts, collect them, and then transfer them to another account. The amount transferred from the cost account is transferred to the "Profit Distribution-Undistributed Profit" account when the balance between income and expenses is lowered.