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nikki26
Level 1

Chart of Accounts

When setting up a chart of accounts how do you treat a suspense account is it a liability or an asset. 

Solved
Best answer January 21, 2021

Accepted Solutions
John C
QuickBooks Team

Chart of Accounts

Hi nikki26 Our default VAT suspense account is set up as a liability account.

View solution in original post

3 REPLIES 3
Mark_R
QuickBooks Team

Chart of Accounts

Hi there, @nikki26.

 

Allow me to ease your confusion on setting up the suspense account in QuickBooks Online (QBO).

 

The suspense account is automatically created once the VAT feature is turned on in your QBO account. And it is a liability account that records the VAT returns and payments.

 

You might want to check out these articles to learn more about VAT:

 

 

Please know that I'm just a reply away if you need any further assistance setting up accounts in QuickBooks Online. I'm always around if you need any help.

nikki26
Level 1

Chart of Accounts

Thank you for your reply, we are VAT exempt due to being a public entity. The question being is it an asset or a liability in the balance sheet.

Thank you

John C
QuickBooks Team

Chart of Accounts

Hi nikki26 Our default VAT suspense account is set up as a liability account.

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