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Suspense account comes under which accounting type ?

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Question added by AJMAL - CMA , Chief Accountant , Metal Cube Metal Industry
Date Posted: 2018/12/09
Sreeram Vishwanathan
by Sreeram Vishwanathan , Manager- Accounting & Compilation Services , Ethics Plus Public Accountants

Suspense account can be categorized under current assets or current liabilities. 

This account is temporary in nature and is usually used to record unidentified payments/receipts. Suspense accounts should not reflect in year-end closing ideally if the books of accounts are closed properly.

Muhammad Hashim Khan
by Muhammad Hashim Khan , Finance Manager & Company Secretary , DHA Cogen Limited

The suspense account is classified as a current asset, since it is most commonly used to store payments related to accounts receivable. It is possible to also have a liability suspense account, to contain accounts payable whose disposition is still being decided.

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