suspense account(redirected from suspense accounts)
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2. An account in which a company deposits and withdraws funds for transactions that have not yet been completed. A suspense account exists in order to keep ongoing transactions off of a balance sheet.
In accounting, a temporary “parking place”for entries one does not know how to classify.
Example: An apartment project receives a cash rent payment left in its mailbox. There is no indication of the name of the tenant, so the manager cannot post the payment to any particular account. Because of the software accounting system, however, the manager cannot create a deposit slip for the payment unless there is a tenant account. To solve the problem, the manager posts the payment to the suspense account, where it will stay temporarily until someone can find out the tenant's name.