andy chuksDo you mean Suspense Account? Please clarify 1009 August 2010
adekunle jamiu yakubyes suspense account 0010 August 2010
andy chuksA suspense account is an account in the general ledger in which amounts are temporarily recorded. It is an account used temporarily to carry doubtful receipts and disbursements or discrepancies pending their analysis and permanent classification.
It's an account to which one side of the double entry recording a transaction can be posted until its correct destination is known. This one side can be a debit or a credit entry.
Importance and Features
- The suspense account is used because the proper account could not be determined at the time that the transaction was recorded.
- When the proper account is determined, the amount will be moved from the suspense account to the proper account.
- It helps avoid error in proper account.
- It helps ensure that proper account is accurate and represent true receipts, disbursements etc.
- Suspense account helps to draft final account along with checking of errors simultaneously
- Suspense account helps to show the total amount of errors needed to be rectified
- Suspense account helps to show the different accounts where in rectifications are to be made
- Suspense accounts must be minimized 0010 August 2010
adekunle jamiu yakubthanks another question is this :what is manufacturing account 0019 August 2010
andy chuksA Manufacturing Account is an account prepared to find out the cost of goods manufactured. It is an account that ascertain the cost of goods manufactured by a company during the year distinctly before they prepare the trading and ascertain the gross profit.
Characteristics of Manufacturing account
- the opening and closing stocks of finished goods are not entered in it.
- In respect of materials it is the figure of materials consumed which is debited to the account. This figure is obtained by adjusting the purchase of materials for the opening and closing stock of materials.
- In the manufacturing concern there will always be some unfinished goods or work-in-progress. The cost of work-in-progress at the end of the year is credited to this account, shown in the balance sheet and debited to the manufacturing account of next year as on opening balance.
- Amounts raised by sale of waste or scrap materials are deducted from raw material purchases. 0019 August 2010
adekunle jamiu yakubi ask some question some days ago, no answer for it what 0031 August 2010
andy chukswhat question is that adekunle? 0031 August 2010