BASIC ACCOUNTING : GL - TB - SUSPENSE A/C

GENERAL LEDGER ACCOUNTING

A general ledger contains all the accounts for recording transactions relating to a company's assets, liabilities, owners' equity, revenue, and expenses.

A company's main accounting records. A general ledger is a complete record of financial transactions over the life of a company. The ledger holds account information that is needed to prepare financial statements, and includes accounts for assets, liabilities, owners' equity, revenues and expenses.

WHAT IS TRIAL BALANCE

The  trial  balance  is  a  statement   containing  the  various  ledger  balances  on  a  particular  date.  The  entire  ledger  is  summarized  in  the  form  of  a  Trial  balance.  The  various   Dr. and  Cr.  Balances  of  the  different  accounts  are  taken  into  it.  The  two  sides  of  the  trial  balance  should  match.

SUSPENSE  ACCOUNT   

If  both  the  sides  of  the  Trial  Balance  do  not  match  then  a  suspense  A/c  nay  be  opened  to  put  the  difference.  This  is  a  temporary  account,  which  has  to  be  written  off  at  the  earliest  after  the  error  is  detected  and  rectified. If  the  credit  side is  less,  then  the  suspense  A/c  will  be  credited. But  if  the  credit  side  is more,  then  this  will  be  debited.