Suspense Account
Definition
A temporary holding account for transactions that cannot yet be classified, perhaps an unidentified bank receipt or an entry pending documentation. It should be investigated and cleared to zero before the books are closed.
Related Terms in Core Accounting
Clearing Account
A transit account used to hold amounts briefly while a transaction moves between systems or stages, such as undeposited funds or a payroll clearing account. By design it nets to zero once both sides of the transaction are posted.
Petty Cash
A small cash float kept on site for minor expenses too trivial for a purchase order or card payment. Controlled with receipts for every disbursement and periodic replenishment back to the agreed float.
Imprest System
A petty-cash control method that fixes the float at a set amount and tops it back up by exactly the receipts presented. Because cash on hand plus vouchers must always equal the float, any shortfall is visible immediately.
Reconciliation
Comparing two independent records of the same transactions and resolving every difference, most commonly the accounting ledger against a bank statement. Reconciliation is what makes a balance trustworthy rather than merely recorded.
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