Suspense Accounts And Link Heads by ert554898

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									Suspense Accounts And Link
          Heads



        Abhilasha Jha
          IRAS(P)
     What are Suspense heads?
• Are heads in which those transactions are
  recorded which cannot be booked to final
  heads of accounts for any reason.
• Transactions in the suspense heads are held
  temporarily pending clearance by payment
  or recovery or adjustment to the final heads
  of accounts.
    Types Of Transactions Booked
         To Suspense Heads
• Inventory Accounts
• Cash Advances
• Materials issued to contractors
• Allocation is not known or final acceptance
  of a party to a claim is awaited
• Link between commercial and government
  accounting.
           Suspense Heads
• Revenue Account-
  Demands payable,Demands recoverable,Traffic
   Suspense,Misc.Accounts Recovery.
• Capital Account-
  Stores,Purchase,Sales,SINT,MAC,WMS,
  Labour
                  Contd.
• Debt-
  Loans and advances,Deposits
• Remittances-
  RBS, RIB, Cheques and Bills, M Remittance and
   Deposits with RBI
               Link Heads
• Those suspense heads which serve as a link
  between government and commercial
  accounts.
• They bring into account earnings which
  have accrued to us but have not yet been
  received and liabilities which have occurred
  but have not been discharged.
          Debit Credit Entries
• Demands payable:
  31st March-at the time of passing pay sheet
  Demand No.3-------Dr
  Demands payable---Cr

   1st April-handing over cheque
   Demands Payable-----Dr
   Cheques and bills------Cr
                Contd…
• WMS account:
  Issue of material from stores
   WMS----------------Dr
   Stores Suspense---Cr
   Purchase of material directly by W/S
   WMS---------------Dr
   Ch.& Bills----------Cr
Thank You

								
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