P/L suspense A/c

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!)?