banner_ad

profir and loss suspense account

3799 views 3 replies
in case of death of a partner why the profit of the deasesed partner is credited with (profit suspense account) or debited with (loss suspense account ) ?

please ans.
Replies (3)
Since actual profit or loss till date of death is not availale hence it is dr/cr to PL Suspense A/c and at the end of year it is transferred to PL Appropriation A/c
usually profit or loss to be shared by partners at the end of the financial year.
but where as in case of retirement and death of the partners, firm has to settle the amounts during the financial year. so firm has to transfer profits up to the date of retirement or death. it is purely temporary adjustment entry. that's why profit and loss suspense a/c.
at the end of the F.Y. suspense a/c is to be transferred to p&l appropriation a/c.

according to my knowledge (and as per icai foundation module 2021) .. it is transferred to p&l account .. not p&l appropriation 

 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details