Advertisement Remove all ads

Share of Profit Or a Deceased Partner Till the Date of His Death is ____________ - Book Keeping and Accountancy

Share of profit or a deceased partner till the date of his death is ____________

a. debited to profit and loss adjustment account

b. credited to profit and loss adjustment account.

c. debited to profit and loss suspense account.

d. credited to profit and loss suspense account.
Advertisement Remove all ads

Solution

Share of profit of a deceased partner till the date of his death is debited to profit and loss suspense account.

Explanation: The deceased partner is entitled to receive his/her share in the profit or loss earned or incurred by the firm till his/her date of death. But, practically it is not possible to close the books of accounts during an accounting period. Thus, share of profit of a deceased partner is debited to Profit and Loss Suspense Account.

 

Concept: Retirement Or Death of a Partner - Amount Due to Retiring Parter
  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×