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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
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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.
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