Q. What happen if MS SQL database space exceeds the limit, an account will be suspended or hosted application using database will work with errors?

Ans: Well, the account won’t be suspended for exceeding the space limit. You might get some errors on the URL that might be using MSSQL databases.

The website is only suspended if you exceed your bandwidth limit but that is only after you ignore the notifications that are sent to you when you reach 80% of the bandwidth limit.