Question

What is a suspense account? Is it necessary that is suspense account will balance off after rectification of the errors detected by the accountant? If not, then what happens to the balance still remaining in suspense account?

Answer 1

The suspense account is referred to as the account which is prepared during the times of the errors in the trial balance when the balances of the debit and the credit side so bot match with each other.

This account hence records the difference of both the sides of the trial balance to record the differing amount under its head.

This discrepancy in the amount of the debit and the credit column occurs due to the error in the accounting process.