Doubt (Accountancy)

Why the profit and loss suspense a/c which is payable to the death partner's executors, comes in the assets side of the balance sheet...?

Punya Chakraborty

Punya Chakraborty

CA Inter


31-Mar-20 01:54


Answers (1)

It is an account with a debit balance (and not actually an asset). The share of profit of the deceased partner is credited to the executors and PL Suspense is debited. Later, this account is transferred to normal PL/Appropriation.

Suraj Lakhotia

Suraj Lakhotia


01-Apr-20 09:39