Suspense account and rectification of errors

Suspense account

A temporary account used when:

• the Trial Balance doesn't tally and the error isn't found yet, or
• money is received or paid and you don't yet know which account it belongs to.

It must be cleared to zero once the errors are found. Never carry it into the final accounts.

Rectification entries

Fix errors with a Journal (F7), not by deleting or editing old vouchers after returns are filed.

One-sided error — sales of ₹8,000 not posted to the customer:

Customer A/c                    Dr   8,000
    To Suspense A/c                     8,000

Wrong account (two-sided) — repairs of ₹15,000 posted to Machinery:

Repairs A/c                     Dr  15,000
    To Machinery A/c                   15,000

Wrong amount — purchase of ₹9,800 posted as ₹8,900: pass an entry for the ₹900 difference.

Tips

• Write a clear narration saying which voucher is being corrected.
• If the error changes GST (wrong rate, wrong party), correct it through a credit/debit note or GSTR-1 amendment as well.