1.

A, B and C are partners. C expired on 18th December 2019 and as per agreement surviving partners A and B directed the accountant to prepare financial statements as on 18th December 2019 and accordingly the share of profits of C (deceased partner) was calculated as Rs. 12,00,000. Which account will be debited to transfer C’s share of profits: (a) Profit and Loss Suspense Account.(b) Profit and loss Appropriation Account.(c) Profit and loss Account.(d) None of the above.

Answer»

(b) Profit and loss Appropriation account.



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