Question

When do we open the profit/loss suspense account in retirement/death of a partner?

Answer 1

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. At the time death of a partner, Profit and Loss A/c will not be debit/credit because, it is not possible for the firm to alter the books during the year, thus on the date of death a partner Profit and Loss Suspense A/c is debited/credited.