Outline two circumstances which will lead to the opening of a suspence account?

1. Discrepancies in financial records: If there are discrepancies or errors in financial records that cannot be immediately resolved, a suspense account may be opened to temporarily hold the difference until it can be properly identified and corrected.

2. Unidentified transactions: If there are transactions that cannot be immediately classified or assigned to a specific account, a suspense account may be opened to temporarily hold these transactions until they can be properly identified and allocated to the correct account.

1. Disputed payment: When a payment is received but the exact amount owed is uncertain, a suspense account can be used to hold the funds until the dispute is resolved.
2. Unidentified remittance: When a payment is received without any identifying information, such as an invoice number or customer name, a suspense account can be used to hold the funds until the source of the payment is determined.