Suspense Account
Definition
A temporary ledger account used to record transactions when there is uncertainty about the correct classification, or to make the Trial Balance agree when errors are suspected. It is closed once the errors are located and rectified.
Example
"If the Trial Balance shows a difference of ₹500, a Suspense Account is opened for ₹500, and when the error (omission in posting) is found, the account is closed with a rectifying entry."