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??
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 26 June 2011
Can u pls ellaborate your question for correct opinion.
reena
(reena9823@gmail.com)
(165 Points)
Replied 26 June 2011
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
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 26 June 2011
SECOND ENTRY IS MORE SUITABLE
CA Rajat Jain
(CA)
(1677 Points)
Replied 26 June 2011
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.
Raakhi Patra
(2 Points)
Replied 16 January 2021
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!)?