Suspense accounts
You'll learn what suspense accounts are, why they're needed, and how to use the stepped approach to clear them in your trial balance corrections.
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In this lesson
- 0:00 Introduction to suspense accounts
- 1:02 When suspense accounts must be cleared
- 2:47 Worked example: opening the suspense account
- 3:00 Adjustment one: expense recording error
- 4:08 Adjustment two: error of omission
- 4:44 Adjustment three: transposition error
About this lesson
This video walks you through identifying errors that create imbalances—including errors of principle, transposition errors, and omissions—and shows you exactly how to journal each correction so the suspense account clears to zero. Essential for Financial Accounting and Financial Reporting papers, this technique appears regularly in exam questions and is vital for producing accurate final accounts.
Duration: 6m
Transcript
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