Hi there I have a number of entries in the suspense account. A typical example is below.
We have two bank accounts:
An office account
A Clients account
I have a client (band) whom I paid for a hotel for from the office account. The client returned the cash to their client account and I transferred this back to the office account
On our profit & loss report this item (£70.00) is in the Suspense Account (9998);
29/05/2015 TRANSFER TO TONE MGMT LTD, 70.00
I need to change this to the correct nominal code along with other similar entries. Can you advise on what nominal code I change this to?
Thanks,
Tom
The suspense account holds transactions that are untagged in the bank view, so the correct way to remove items from the suspense account is to tag them properly from the bank statement.
How are you accounting for these kinds of transactions, do you treat them as purchases on your own behalf and then invoice the client for the same amount, or do you want to keep the transactions off your own books (so it’s as if the client had paid for these things themselves)? In the former case the money out from the office account would be a “payment to a supplier” tagged to a purchase invoice, and the money in to the client account would be “payment from a customer” tagged to a sales invoice. In the latter case it’s effectively just a transfer from the office account to the client account (possibly via a temporary holding account if the two payments were not on the same day).
(Usual disclaimer, I am not an accountant, consult yours if you are in any doubt as to how you are supposed to be treating things)