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 ?

The suspense account had several material debits and credits that were unexplained, and had a material credit (liability) balance.

Maine Credit Union Manager Admits to Fraud

For the purposes of the CO2 exam, a suspense account balance will be provided, probably based on the first type of situation I have described, together with a number of errors that have been uncovered.

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

We have identified a lot of misappropriated and inflated funds which are presently floating in a suspense account.

SCAM 2; Gangsters touting for Scottish victims

This action was however intentional and since then the fund has been in a suspense account at the Central Bank of Nigeria - our APEX bank, we are now ready to transfer the fund overseas, and that is where you come in.

Beware of Nigerians bearing gifts

Each year as the corporation makes tax-deductible cash contributions to its ESOP, stock is released from the suspense account and allocated to the accounts of the participants.

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

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.