Canada Clearing the suspense account


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Hi everyone,
I'm trying to clear a complex transaction on the suspense account from last year. This relates to bank transfer made for services provided through a project last year. The bank transfer was for a portion of the revenue & was recorded as : Dr. Bank cr. suspense. the other portion of the revenue was made though card payment but it was discovered that it was not recorded at all. During the last fiscal, a full refund was issued for the entire amount. Since the year was closed and the project has also closed, I was thinking of the following entries to offset : 1) to clear the suspense account for the partial revenue: Dr. suspense cr. misc. assets (or equity) 2) for the unrecorded revenue from last year: Dr. misc. assets Cr. Equity
Appreciate your input! It is an inherited situation that I would like to clear.
 
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kirby

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Unless I am missing something, since you made a full refund then you never earned the unrecorded revenue. So do not make an entry for that. (Entry 2)
As for the credit amount in suspense, of course it should have been cleared out last year. So at this point, Dr Suspense and credit a miscellaneous income account. Entries straight to equity are a super special and rare case, usually for very very large dollar items. I suspect this is not your case.
 
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The entry to correct the Suspense Account - its Dr Suspense Account; and Cr whichever Balance Sheet account you had previously Dr to when you did the refund of the entire amount. When you did the refund, it was Cr Bank, Dr what account?
 

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