A suspense account is an account of the general ledger that is used for the temporary recording of business transactions. The need for a suspense account arises due to the inability to identify the appropriate ledger account for the recorded transaction. Here, in the above question sale of Rs. 400 was incorrectly posted to Ram as Rs. 40 instead of posting it to Gautam at Rs. 400. Therefore, in order to rectify the above mistake, we need to open a suspense account by passing the journal entries as follows:JOURNAL ENTRIES:Gautam A/c Dr. Rs. 400 To Ram A/c Rs. 40 To Suspense A/c Rs. 360 (Being Rectification Entries Passed)Additional Information3 golden rulesdebit the receiver, credit the giverdebit what comes in, credit what goes out debit all the expenses and losses, credit all the incomes and gains.