Bank Suspense
Also called: Unreconciled Bank Items
A holding account for bank statement lines you cannot yet explain, on the Balance Sheet. Should be zero after every reconciliation.
In detail
Bank Suspense is a holding ledger under Bank Accounts for bank statement lines that cannot yet be explained: an unknown deposit, a charge with no advice, a transfer whose customer is unclear. Posting the line here keeps the bank ledger agreeing with the statement while the question is open, instead of leaving the reconciliation stuck. Once the item is identified, a second Journal Entry moves it from suspense to the right account, such as Debtors with the customer as party or Bank Charges. The balance should be zero at every month end and must be zero at Ashadh end; an auditor treats a lingering suspense balance as an unresolved error. It is never a place to park a difference permanently.
Formula
Bank Suspense balance = Unexplained statement lines posted - Lines later reclassified; target balance is zero.
Accounting entry
| Account | Debit | Credit |
|---|---|---|
| Bank Account (rename me) | Rs 10,000 | |
| Bank Suspense | Rs 10,000 |
How to record it in BRAccount
- 01In Banking > Bank Reconciliation Tool, find the statement line with no matching document.
- 02Go to Invoicing > Journal Entry > New dated the statement line; debit the bank, credit Bank Suspense for a deposit.
- 03Submit. The entry above posts for an unknown Rs 10,000 deposit, and the reconciliation can match the line.
- 04When the customer confirms, post a Journal Entry debiting Bank Suspense and crediting Debtors with the customer as party.
- 05Before each Monthly Close, open the Bank Suspense ledger from the chart and confirm it is zero.
When to use it
Post by Journal Entry when the bank shows a deposit or charge with no matching document. Move it to the correct account once identified.
Example from the demo books
Dr Bank Account Rs 10,000, Cr Bank Suspense Rs 10,000 for an unknown deposit, later moved to Debtors when the customer confirmed.