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.
3 Replies
Prakash Gehani
(Consultant & Teacher(Whatsapp 8718057907))
(1306 Points)
Replied 14 October 2018
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
satish
(teaching)
(2046 Points)
Replied 16 October 2018
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.
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.
ADITYA BANSAL
(2 Points)
Replied 14 September 2021
according to my knowledge (and as per icai foundation module 2021) .. it is transferred to p&l account .. not p&l appropriation
Recent Topics
- Issue with refund for person who has filed for rel
- How to take ITC for October 2024 GST Payment in PM
- How to refund a wrong transaction Phone Pe?
- Avoiding tax audit in case of intraday equity loss
- Form 3CEAB
- Form 3CEAA and Form 3CEAB
- DIR 3 Web KYC
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
Related Threads
CAclubindia
