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What do you mean by Suspense account?

The suspense account is a temporary account in which the difference in trial balance is placed and is wiped off when the error are located and corrected. The suspense account balance will be placed on that side of the trial balance which is found to be shorter in order to make the trial balance agree.

Suspense Account Logic Flow - wolexie - XMind: The Most ...

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Suspense account facilitates the preparation of financial statements even when the trial balance has not tallied. It also helps the rectification of errors in the subsequent period. It is important to note that only the errors affecting the agreement of the trial balance are rectified through the medium of suspense account.

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