close · Lesson 4 · 8 min
Control accounts, clearing, and suspense
AR, AP, payroll liabilities, merchant clearing, and undeposited funds must equal their subledgers. Suspense is a siren, not a home.
Dotted words have a reminder. Hover on a computer, tap on a phone.
From earlier
- AR
- AP
- clearing account
- undeposited funds
- control account
The rec that isn’t the bank
Aged Receivables total must equal the AR control account. Aged Payables must equal AP. Payroll liabilities must equal what the provider says is still owed. Fixed-asset register must equal cost and accum. dep. accounts. If they differ, you posted a journal through a control account or coded a bank line past the subledger.
Clearing and undeposited funds
Merchant clearing, undeposited funds, payroll clearing, and “holding” accounts exist to bridge timing. Their job is to return to zero (or to a known in-transit amount you can name). A growing balance is a missing match, a duplicate, or a fee you never expensed.
Suspense and “Ask my accountant”
A suspense account is allowed for 48 hours while you wait on a receipt. It is not allowed at lock date. Same for QBO’s Ask my accountant. If you cannot code it, ask. If you still cannot, accrue a reasonable estimate and flag it — don’t hide it in Owner’s equity.
Check
Choices shuffle each visit. Misses send you back to the section. Look back clears the quiz so you can try again. Practice drills deal a new problem on try-again.
Choose an answer, then check.
This try
Aged receivables is $4,210 and the AR account is $4,860. You should: