suspense account

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Suspense account

An account used temporarily to record receipts and disbursements that have yet to be classified.

Suspense Account

1. A brokerage or some other account in which an investor deposits securities or cash while he/she decides how to invest it. A suspense account is, by definition, low-risk, as the investor has no intention of losing the deposit while making appropriate investment decisions.

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.

suspense account

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.

References in periodicals archive ?

IRS guidance provides that the failure can generally "be corrected by reallocating all forfeitures in the plan's forfeiture suspense account to all plan participants who should have received them, had the forfeitures been allocated on time.

An Eye on Plan Forfeitures

A suspense account has been opened to make it balance.

Fundamentals of Financial Accounting: as with many topics, you would be well advised to practise a methodical approach to answering questions about suspense accounts, which are highly likely to appear in the CO2 exam

She found the money in a suspense account and arranged for it to be paid at her local branch.

WALES: Bank froze my cash with no warning; Social worker was left totally penniless

In short, a suspense account is not some type of magic account that precludes the legal conclusion that the funds have been received and accepted by the mortgage servicer.

The 20 greatest loan servicing myths: here are some common misconceptions about the intricacies of loan servicing

It may be pertinent to note here that since it has not been possible to locate the data of the unrealized interest transferred to the suspense account in the annual reports of the banks, it could not be taken into account in the above calculations of the NPLs ratio If this item is also duly accounted for the ratio of NPLs will further increase sharply and may be that it turns out to be higher than what it was prior to the induction of the professional management in early 1997.

Performance of banking sector

It would be tax-disadvantageous, however, for the Corporation not to use the dividends on the unallocated shares to pay down the loan but instead add them to the suspense account.

How small business can gain advantages from ESOPs

One approach is to establish a suspense account for the excess contribution amount, and to use that suspense account to reduce subsequent employer contributions.

TEI-IRS interview on Voluntary Compliance Resolution Program

He found more than $1 billion in an RTC holding tank called a suspense account.

Soldiers of fortune

After examining the general ledger for 2015-16, confidential expenditure of Sh105 million was charged to the general suspense account without verifiable documents.

Presidency cannot account for 2.7 billion in confidential expenditure

When she recorded the cash withdrawal as going to the non-existent teller drawer, the vault balance reflected a reduction in the actual cash on hand while the corresponding deposit transfer could not be recorded because there was no such drawer; rather it was recorded in a general ledger suspense account as a default entry, according to the auditor's report.

Shoreline FCU Fraud Case: Employees Recount Betrayal

As per the annual accounts cleared at the latest meeting on Monday, the negative balance of the suspense account had been completely accounted for and there was a positive balance now.

India : EPFO ready to hike provident fund interest rate to 8.75% for this fiscal

Banks, DFIs and MFBs shall bear the cost of such write offs to the extent of amount held into provision against Non Performing Loans (NPLs) and interest in suspense account, while the rest of the cost will be paid by the Government of Pakistan as subsidy, says IH&SMEFD Circular Letter No.