Doubt (Accountancy)

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

CA Inter

★ 0

31-Mar-20 01:54

698

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.

CA Suraj Lakhotia

Admin

01-Apr-20 09:39