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                         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

AssetsLiabilities & Equity
Current Assets:Current Liabilities:
Cash60,000Accounts Payable25,000
Accounts Receivable40,000Short-Term Loans Payable15,000
Prepaid Expenses10,000
Total Current Assets160,000Total Current Liabilities40,000
Non-Current Assets:Non-Current Liabilities:
Property, Plant & Equipment (Net)300,000Long-Term Debt150,000
Intangible Assets20,000
Other Non-Current Assets30,000
Total Non-Current Assets350,000Total Non-Current Liabilities150,000
Total Assets510,000Total Liabilities190,000
Owner's Equity:
Common Stock200,000
Retained Earnings120,000
Total Owner's Equity320,000
Suspense Account20,000
Total Liabilities & Owner's Equity510,000Total Liabilities & Owner's Equity510,000

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. 


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.