Humanities/Arts Exam > Humanities/Arts Questions > A, B and C were partners sharing profits and ...
Start Learning for Free
A, B and C were partners sharing profits and losses in the ratio of 3 : 2 : 1. C died on 1st August, 2022 and his share of profit from the beginning of the accounting year upto the date of death amounted to Rs. 70,000. C’s share of profit will be debited to:
- a)Profit and Loss Account
- b)Profit and Loss Adjustment Account
- c)Profit and Loss Appropriation Account
- d)Profit and Loss Suspense Account
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
A, B and C were partners sharing profits and losses in the ratio of 3 ...
Explanation:
Profit and Loss Suspense Account:
- When a partner dies, their share of profit or loss needs to be accounted for until the date of death.
- In this case, C's share of profit from the beginning of the accounting year up to the date of death is Rs. 70,000.
- This amount needs to be recorded in the Profit and Loss Suspense Account.
Reason for using Profit and Loss Suspense Account:
- The Profit and Loss Suspense Account is used to temporarily hold the share of profit or loss of a deceased partner until the final distribution of profits is made.
- This ensures that the deceased partner's share is accurately accounted for and does not impact the ongoing partnership accounts.
Final Distribution:
- After the final distribution of profits is calculated, C's share of profit will be transferred from the Profit and Loss Suspense Account to the appropriate partners' capital accounts based on the profit-sharing ratio.
Therefore, in this scenario, C's share of profit will be debited to the Profit and Loss Suspense Account until the final distribution is determined and recorded.
Profit and Loss Suspense Account:
- When a partner dies, their share of profit or loss needs to be accounted for until the date of death.
- In this case, C's share of profit from the beginning of the accounting year up to the date of death is Rs. 70,000.
- This amount needs to be recorded in the Profit and Loss Suspense Account.
Reason for using Profit and Loss Suspense Account:
- The Profit and Loss Suspense Account is used to temporarily hold the share of profit or loss of a deceased partner until the final distribution of profits is made.
- This ensures that the deceased partner's share is accurately accounted for and does not impact the ongoing partnership accounts.
Final Distribution:
- After the final distribution of profits is calculated, C's share of profit will be transferred from the Profit and Loss Suspense Account to the appropriate partners' capital accounts based on the profit-sharing ratio.
Therefore, in this scenario, C's share of profit will be debited to the Profit and Loss Suspense Account until the final distribution is determined and recorded.
Free Test
| FREE | Start Free Test |
Community Answer
A, B and C were partners sharing profits and losses in the ratio of 3 ...
Profit and Loss suspense A/c be opened on death.
|
Explore Courses for Humanities/Arts exam
|
|
Similar Humanities/Arts Doubts
Top Courses for Humanities/ArtsView all
A, B and C were partners sharing profits and losses in the ratio of 3 : 2 : 1. C died on 1st August, 2022 and his share of profit from the beginning of the accounting year upto the date of death amounted to Rs. 70,000. C’s share of profit will be debited to:a)Profit and Loss Accountb)Profit and Loss Adjustment Accountc)Profit and Loss Appropriation Accountd)Profit and Loss Suspense AccountCorrect answer is option 'D'. Can you explain this answer?
Question Description
A, B and C were partners sharing profits and losses in the ratio of 3 : 2 : 1. C died on 1st August, 2022 and his share of profit from the beginning of the accounting year upto the date of death amounted to Rs. 70,000. C’s share of profit will be debited to:a)Profit and Loss Accountb)Profit and Loss Adjustment Accountc)Profit and Loss Appropriation Accountd)Profit and Loss Suspense AccountCorrect answer is option 'D'. Can you explain this answer? for Humanities/Arts 2025 is part of Humanities/Arts preparation. The Question and answers have been prepared according to the Humanities/Arts exam syllabus. Information about A, B and C were partners sharing profits and losses in the ratio of 3 : 2 : 1. C died on 1st August, 2022 and his share of profit from the beginning of the accounting year upto the date of death amounted to Rs. 70,000. C’s share of profit will be debited to:a)Profit and Loss Accountb)Profit and Loss Adjustment Accountc)Profit and Loss Appropriation Accountd)Profit and Loss Suspense AccountCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Humanities/Arts 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A, B and C were partners sharing profits and losses in the ratio of 3 : 2 : 1. C died on 1st August, 2022 and his share of profit from the beginning of the accounting year upto the date of death amounted to Rs. 70,000. C’s share of profit will be debited to:a)Profit and Loss Accountb)Profit and Loss Adjustment Accountc)Profit and Loss Appropriation Accountd)Profit and Loss Suspense AccountCorrect answer is option 'D'. Can you explain this answer?.
A, B and C were partners sharing profits and losses in the ratio of 3 : 2 : 1. C died on 1st August, 2022 and his share of profit from the beginning of the accounting year upto the date of death amounted to Rs. 70,000. C’s share of profit will be debited to:a)Profit and Loss Accountb)Profit and Loss Adjustment Accountc)Profit and Loss Appropriation Accountd)Profit and Loss Suspense AccountCorrect answer is option 'D'. Can you explain this answer? for Humanities/Arts 2025 is part of Humanities/Arts preparation. The Question and answers have been prepared according to the Humanities/Arts exam syllabus. Information about A, B and C were partners sharing profits and losses in the ratio of 3 : 2 : 1. C died on 1st August, 2022 and his share of profit from the beginning of the accounting year upto the date of death amounted to Rs. 70,000. C’s share of profit will be debited to:a)Profit and Loss Accountb)Profit and Loss Adjustment Accountc)Profit and Loss Appropriation Accountd)Profit and Loss Suspense AccountCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Humanities/Arts 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A, B and C were partners sharing profits and losses in the ratio of 3 : 2 : 1. C died on 1st August, 2022 and his share of profit from the beginning of the accounting year upto the date of death amounted to Rs. 70,000. C’s share of profit will be debited to:a)Profit and Loss Accountb)Profit and Loss Adjustment Accountc)Profit and Loss Appropriation Accountd)Profit and Loss Suspense AccountCorrect answer is option 'D'. Can you explain this answer?.
Solutions for A, B and C were partners sharing profits and losses in the ratio of 3 : 2 : 1. C died on 1st August, 2022 and his share of profit from the beginning of the accounting year upto the date of death amounted to Rs. 70,000. C’s share of profit will be debited to:a)Profit and Loss Accountb)Profit and Loss Adjustment Accountc)Profit and Loss Appropriation Accountd)Profit and Loss Suspense AccountCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for Humanities/Arts.
Download more important topics, notes, lectures and mock test series for Humanities/Arts Exam by signing up for free.
Here you can find the meaning of A, B and C were partners sharing profits and losses in the ratio of 3 : 2 : 1. C died on 1st August, 2022 and his share of profit from the beginning of the accounting year upto the date of death amounted to Rs. 70,000. C’s share of profit will be debited to:a)Profit and Loss Accountb)Profit and Loss Adjustment Accountc)Profit and Loss Appropriation Accountd)Profit and Loss Suspense AccountCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A, B and C were partners sharing profits and losses in the ratio of 3 : 2 : 1. C died on 1st August, 2022 and his share of profit from the beginning of the accounting year upto the date of death amounted to Rs. 70,000. C’s share of profit will be debited to:a)Profit and Loss Accountb)Profit and Loss Adjustment Accountc)Profit and Loss Appropriation Accountd)Profit and Loss Suspense AccountCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for A, B and C were partners sharing profits and losses in the ratio of 3 : 2 : 1. C died on 1st August, 2022 and his share of profit from the beginning of the accounting year upto the date of death amounted to Rs. 70,000. C’s share of profit will be debited to:a)Profit and Loss Accountb)Profit and Loss Adjustment Accountc)Profit and Loss Appropriation Accountd)Profit and Loss Suspense AccountCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of A, B and C were partners sharing profits and losses in the ratio of 3 : 2 : 1. C died on 1st August, 2022 and his share of profit from the beginning of the accounting year upto the date of death amounted to Rs. 70,000. C’s share of profit will be debited to:a)Profit and Loss Accountb)Profit and Loss Adjustment Accountc)Profit and Loss Appropriation Accountd)Profit and Loss Suspense AccountCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A, B and C were partners sharing profits and losses in the ratio of 3 : 2 : 1. C died on 1st August, 2022 and his share of profit from the beginning of the accounting year upto the date of death amounted to Rs. 70,000. C’s share of profit will be debited to:a)Profit and Loss Accountb)Profit and Loss Adjustment Accountc)Profit and Loss Appropriation Accountd)Profit and Loss Suspense AccountCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice Humanities/Arts tests.
|
|
Explore Courses for Humanities/Arts exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup