Question

profit and loss suspense account format
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Answer 1

Answer:

in case of Death of a partner, Share of deceased partner in the profits or losses of the firm (till the date of his/her death) is paid through Profit and Loss Suspense Account.

Answer 2

Answer:

A P&L suspense account is used to record some fictitious profits for the purpose of settlement of share of profits to a deceased partner. Later, such errors are identified and rectified and accordingly adjusted in the books of accounts so that the balance of the P&L suspense a/c is zero.