A form of accounting whereby the debits equal credits in a set of financial books for an entity. Traditionally, a trial balance is used to make certain the books are in balance. The system of accounting is approximately 600 years old and over time has developed into our modern day form of economic transaction recording.
When bookkeepers face an unknown variable with a transaction and don’t know where to place the debit or credit, they use a temporary account to hold the value. This is called the ‘Suspense’ account. […]