[Solve] Suspense Account in Balance Sheet Example

 Welcome Back

                         Today we are going to solve an example of suspense account in the balance sheet and also tell you how the suspense account is shown in the balance sheet.

What is a suspense account?

Now before we start our post let me tell you about what a suspense account.

Defination :- A suspense account is like a temporary holding place in accounting. When there is confusion or uncertainty about where to keep certain transactions, they are temporarily put into this account.. 

Now let's check out the example:

Suspense Account In Balance Sheet Example

Assets		Liabilities & Equity
Current Assets:		Current Liabilities:
Cash	60,000	Accounts Payable	25,000
Accounts Receivable	40,000	Short-Term Loans Payable	15,000
Inventory	50,000
Prepaid Expenses	10,000
Total Current Assets	160,000	Total Current Liabilities	40,000
Non-Current Assets:		Non-Current Liabilities:
Property, Plant & Equipment (Net)	300,000	Long-Term Debt	150,000
Intangible Assets	20,000
Other Non-Current Assets	30,000
Total Non-Current Assets	350,000	Total Non-Current Liabilities	150,000
Total Assets	510,000	Total Liabilities	190,000
Owner's Equity:
Common Stock	200,000
Retained Earnings	120,000
Total Owner's Equity	320,000
Suspense Account	20,000
Total Liabilities & Owner's Equity	510,000	Total Liabilities & Owner's Equity	510,000

As you can see There is a placeholder account where incomplete or improperly classified transactions of 20,000 are temporarily recorded.

The suspense account helps maintain the balance sheet's integrity by holding amounts until they can be correctly allocated. 

Conclusion

Here in this post we add a how to show suspense account in balance sheet with example so if you are an accounting student then you should read this post till the end.