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Question
On the death of a partner, his share in the profits of the firm till the date of his death is transferred to the ______
Options
Debit of Profit and Loss Account.
Credit of Profit and Loss Account.
Debit of Profit and Loss Suspense Account.
Credit of Profit and Loss Suspense Account.
MCQ
Solution
On the death of a partner, his share in the profits of the firm till the date of his death is transferred to the Debit of Profit and Loss Suspense Account.
Explanation:
When a partner dies, his portion of the firm's profits up to the date of his death is moved to the profit and loss suspense account.
shaalaa.com
Retirement or Death of a Partner - Adjustment of Accumulated Profits and Losses
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