Question

When we opens profit and loss suspence account

Answer 1

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❏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.

❏It is a fictitious asset/adjusting asset used for calculation purposes and not recorded in the books of accounts.

Answer 2

★ 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.

★ It is a fictitious asset/adjusting asset used for calculation purposes and not recorded in the books of accounts.

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