Suspense account

In accountancy, a suspense account is an account used temporarily to carry doubtful receipts and disbursements or discrepancies pending their analysis and permanent classification.

It can be a repository for monetary transactions (cash receipts, cash disbursements & journal entries) entered with invalid account numbers. The account specified may not exist, or it may be deleted/frozen. If one of these conditions exist, the transaction should be directed to a suspense account.

In Branchless Banking (BB) - banking through mobile for unbanked - these accounts are used for 'money-in-transit'. For example, sender sends payment from US ACH account to a BB mobile number in Pakistan. The customer receives an alert on their mobile to withdraw this money from any BB agent. Until they withdraw, the remittance stays in the suspense account, earning the financial institute or the BB enabler float/interest on that money. When customer withdrawal completes, the money moves from suspense account to the agent's account who facilitated the cash withdrawal.


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Look at other dictionaries:

  • Suspense account — Suspense Sus*pense , n. [From F. suspens, a. See {Suspense}, a.] 1. The state of being suspended; specifically, a state of uncertainty and expectation, with anxiety or apprehension; indetermination; indecision; as, the suspense of a person… …   The Collaborative International Dictionary of English

  • Suspense account —   Suspense accounts are used by the bank when calculating the balance. If, during the closing of the balance, a particular posting cannot be posted on the correct account, it will be posted on this suspense account …   International financial encyclopaedia

  • suspense account — suspense′ account n. Bookkeeping. bus an account in which items are temporarily entered until their final disposition is determined …   From formal English to slang

  • suspense account — An account containing accounts receivable, monies owed to the Postal Service by others …   Glossary of postal terms

  • suspense account — n. Bookkeeping an account in which items are temporarily entered until their disposition can be determined …   English World dictionary

  • suspense account — An account used temporarily to record receipts and disbursements that have yet to be classified. Bloomberg Financial Dictionary * * * suspense account suspense account ➔ account1 * * * suspense account UK US noun [C] ► ACCOUNTING an account used… …   Financial and business terms

  • suspense account — A *general ledger account used to temporarily record transactions. By nature, a suspense account should be regularly cleared of its contents, as it is merely a resting place for items awaiting analysis or investigation. See also *transit account …   Auditor's dictionary

  • suspense account — laikinoji sąskaita statusas T sritis Gynyba apibrėžtis Sąskaita, atidaryta registruoti išmokoms arba įplaukoms, kurių dėl kokių nors priežasčių negalima įtraukti į tam tikrą biudžetą. atitikmenys: angl. suspense account šaltinis NATO mokymų ir… …   Lithuanian dictionary (lietuvių žodynas)

  • suspense account — noun an account used temporarily to carry doubtful receipts and disbursements or discrepancies pending their analysis and permanent classification • Hypernyms: ↑account, ↑accounting, ↑account statement …   Useful english dictionary

  • suspense account — noun an account in which items are entered temporarily before allocation to the correct or final account …   English new terms dictionary


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