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Effect of Suspense Account Education on Students’ Ability to Correct Accounting Errors among Accounting Education Students in Nigeria

Abstract

This study examined the effect of suspense account education on students’ ability to correct accounting errors among accounting education students in Nigeria. Suspense account education refers to students’ understanding of the principles, procedures, and applications involved in using suspense accounts to temporarily record transactions when accounting entries cannot immediately be classified or when differences occur in the trial balance. The ability to correct accounting errors relates to students’ capacity to identify, analyze, and make appropriate adjustments for errors discovered in accounting records. The study was motivated by the difficulties some accounting education students experience when identifying the nature and appropriate treatment of accounting errors. The study therefore investigated whether adequate knowledge of suspense accounts improves students’ ability to correct accounting errors accurately. Accounting errors may arise from omissions, incorrect entries, errors of principle, compensating errors, or incorrect recording of transactions. Suspense accounts provide an important accounting mechanism for temporarily recording differences while the causes of such discrepancies are investigated and corrected. Students require a clear understanding of the purpose and treatment of suspense accounts to correctly identify errors and prepare appropriate correction entries. Inadequate knowledge may result in students applying incorrect adjustments, failing to identify the source of discrepancies, or misunderstanding the relationship between suspense accounts and the trial balance. Developing this competence is therefore important for students preparing for careers in accounting and financial reporting. The study adopted a survey research design. The population comprised accounting education students in selected Nigerian tertiary institutions, from which an appropriate sample was selected using a suitable sampling technique. Data were collected through a structured research instrument designed to assess students’ suspense account education and their ability to correct accounting errors. The instrument was validated by experts in accounting and accounting education, while appropriate reliability procedures were conducted to establish its consistency. Data collected were analyzed using descriptive and inferential statistical techniques, with the relevant hypothesis tested at a 0.05 level of significance. The study is expected to establish that suspense account education has a significant positive effect on students’ ability to correct accounting errors. Students with stronger knowledge of suspense account principles are expected to demonstrate greater accuracy in identifying accounting errors, determining their causes, and preparing appropriate correcting entries. Adequate knowledge may also improve students’ ability to analyze trial balance differences and understand the circumstances under which suspense accounts should be used. Conversely, inadequate understanding may make it difficult for students to correctly identify errors and determine the appropriate accounting treatment required to rectify them. The study also emphasizes the importance of practical approaches to teaching suspense accounts and error correction in Nigerian tertiary institutions. Lecturers can improve students’ understanding through practical exercises, worked examples, error-identification activities, and case studies involving different types of accounting errors. Students should be given opportunities to examine accounting records, identify discrepancies, and prepare appropriate correction entries. Such activities can help students connect theoretical accounting concepts with practical applications while developing their analytical and problem-solving skills. Regular practice can also improve students’ confidence and accuracy when dealing with suspense accounts and accounting errors. The findings of the study are expected to be useful to accounting education students, lecturers, accounting departments, curriculum developers, and professional accounting organizations. For students, improved suspense account knowledge can strengthen their ability to identify and correct accounting errors and enhance their performance in financial accounting. Lecturers may use the findings to identify areas where students experience difficulties and adopt more practical instructional approaches. Curriculum developers may also strengthen accounting education programmes by incorporating additional exercises on suspense accounts, trial balance differences, and error correction. The study recommends that Nigerian tertiary institutions should strengthen suspense account education through practical exercises, error-correction tasks, worked examples, and regular assessments. Lecturers should provide students with sufficient opportunities to identify different types of accounting errors and prepare appropriate correcting entries using suspense accounts where necessary. Students should also engage in continuous practice and independent study to improve their understanding of accounting error correction. Overall, the study concludes that effective suspense account education is important for improving students’ ability to correct accounting errors and strengthening their practical competence in accounting education.

Keywords: Suspense Account Education, Accounting Errors, Error Correction, Suspense Account, Accounting Education, Accounting Students, Trial Balance, Correcting Entries, Error Detection, Financial Accounting, Accounting Records, Accounting Principles, Error Identification, Accounting Skills, Nigeria.