Suspense Account - What is a Suspense Account?
Definition: A suspense account is an account used on a temporary basis for any transaction or balance that cannot be identified.
A suspense account is normally located in the Profit & Loss account. Any amount that is posted to the suspense account should be there on a temporary basis only as this amount needs to be investigated and posted to the correct code.
If you have taken over the accounting for a company and they have a suspense account it is very important to make sure these amounts are explained and identified and finally removed and coded to the correct account.
If you are unsure about where to code a transaction to then it can be coded to the suspense account until your bookkeeper or accountant can be reached for advice.
Using the Suspense Account
The default suspense account is 9999 and can be used, alternatively you can leave your transaction in the daybook while you consult your accountant or bookkeeper and the code can be entered at a later date.
Most accounting systems contain a suspense or mispostings account in their Chart of Accounts, but this is something that you should avoid using unless all else fails. If you don’t have an account for a specific expense then you may need to create a new one within your chart of accounts.