When a transaction with no valid document is recorded, it causes a mismatch in the account balances. These kinds of transactions are recorded under a temporary account called the Suspense Account. After you record such transactions, you can rectify them. To do so, record them under the relevant account, after which, the balances in the suspense account will be nullified.
Let’s say you receive money from a customer called John for delivering him goods without an invoice. This money can be recorded under the Suspense Account. Later, you can decide to record it under a relevant sales account.
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