Question

Retiring partners share in profit upto the date of his retirement will be debited to profit and loss suspense account. (State True or False)

Answer 1

The simple interest formula allows us to calculate I, which is the interest earned or charged on a loan. According to this formula, the amount of interest is given by I = Prt, where P is the principal, r is the annual interestrate in decimal form, and t is the loan period expressed in years.

Answer 2

The statement that retiring partner's share in profit is upto the date of their retirement debits to profit and loss suspense account is True.

• The retired partner shall be entitled to its share of the profits and losses incurred up to the date of retirement. Through debiting the Profit & Loss Suspense account and crediting the capital account of the retiring partner, these shares are dispensed to the retiring partner.
• The Profit & Loss Suspense account will be opened if any partner retires at the in the mid-year compared to the usual case of retirement at the end of the year