Question

State whether the following statement is True or False with reason.

For recording the Profit or Loss up to the date of death, Profit and Loss Appropriation Account is operated.

पर्याय

• True

• False

Answer 1

This statement is False.

For recording the profit or loss up to the death, Profit and Loss suspense Account is created and operated. This is because final accounts cannot be prepared on the date of the death of a partner. Till that period a separate account called Profit and Loss Suspense A/c is prepared.