Question

Profit and Loss Suspense Account is shown in the new Balance Sheet on ______ side.

पर्याय

• Debit

• Credit

• Asset

• Liabilities

Answer 1

Profit and Loss Suspense Account is shown in the new Balance Sheet on asset side.

Explanation:

It is shown on the Assets side because it represents a debit balance that hasn't been adjusted yet. Since the final profit for the entire year is only calculated at the year-end, this interim payment to the partner is treated as a temporary asset (fictitious asset) until the final accounts are closed.