Practicing Success
Practicing Success
CUET Preparation Today
| On the death of a partner, his share in the profits of the firm till the date of his death is transferred to which account? |
Debit of Profit & Loss Account Credit of Profit & Loss Account Debit of Profit & Loss Suspense Account Credit of Profit & Loss Suspense Account |
| Debit of Profit & Loss Suspense Account |
| It is not possible for any firm to close its books of accounts at any time. Thus, the amount of profit or loss so ascertained is dispensed to the deceased partner through the Profit & Loss Suspense Account. |
