Business Studies, asked by niki98, 1 year ago

why is profit and loss Suspense Account opened in case of death of partner

Answers

Answered by Wafabhatt
5
Thank you for this question. Please find the answer below: 

The Profit and Loss Suspense Account is opened in the case of death of a partner in order to credit the share of the profit of the deceased partner's capital account till the time of his/her death. 

When a businessman/businesswoman dies his capital and assets are transferred to his/her spouse; this is done through the Profit and Loss Suspense Account.
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