Question

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 `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​

Answer 1

Answer:

Profit and loss Appropriation account