Practicing Success
Which account is to be debited to transfer the share of deceased partner for the intervening period? |
Profit and Loss account Profit and Loss Suspense account Deceased Partner's Capital account Surviving Partner Current account |
Profit and Loss Suspense account |
The correct answer is Option (2) - Profit and Loan Suspense account. To account for the deceased partner's share of profits and loss during the interim period in the company's financial records, the following journal entry is recorded: FOR PROFIT- FOR LOSS- |