P/L suspense A/c

When does P/L Suspense A/c come?? Does Revaluation profit/loss, drawings also go to P/L suspense A/c??

Are there any situations when death takes place but still PL Suspense Ac doesn't come??

Replies (6)

Can u pls ellaborate your question for correct opinion.

Yes Sir... sorry

There's a question which says..

'C died on 1st july,2011'.

His share in profit, salary for 3 months, int on capital and drawings have been given d entry as :

C's Cap ac dr.

      TO PL Susp(drawings)

 

 

Wheras in other quest:

the same thing has been gvn entry as:

C cap dr.

 to drwings..

 

m confused as to wich is rite

SECOND ENTRY IS MORE SUITABLE                    

in case of death this entry is passed nd in other cases p&l suspense ac is not used, this ac is prepared 4 distribution of profit in case of death nd p&l suspense is fictitious in nature

hey reena,

Consider the meaning of the word "suspense" - what does it mean? after you write your CA exams, the

 

result is a suspense right?? and when the results are declared, the suspense clears away right? -

 

In the same way,  pending final  settlement  the dead guy's dues have been transferred to a suspense

 

Account. It is now up to you to  clear this suspense A/c by way of adjustments, transfers to appropriate

 

accounts..etc...

 

Also remember suspense A/c doesnt appearin final statements of accounts.

 

if u have trouble with partnership, I suggest CBSE text books and tulsian. They will help you to get a good

grip on basics.

Hello, but why does P & L Suspense A/c on death of partner, is shown in Balance sheet asset side(if it's a liability for the business!)?

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