A, B and C are partners. C expired on 18th December 2019 and as per agreement surviving partners A and B directed the accountant to prepare financial statements as on 18th December 2019 and accordingly the share of profits of C (deceased partner) was calculated as Rs. 12,00,000.
Which account will be debited to transfer C’s share of profits:
(a) Profit and Loss Suspense Account.
(b) Profit and loss Appropriation Account.
(c) Profit and loss Account.
(d) None of the above.
why is the answer profit and loss appropriation account and not profit and loss suspense account?
Answers
Answered by
2
Answer:
b) is the correct answer
Answered by
3
Answer:
profit and loss suspense account
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