On the death of a partner, his executor is paid the share of profits of the dying partner for the relevant period. This payment is recorded in Profit & Loss __________ A / C.

Adjustment

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Appropriation

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Suspense

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Reserve

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C Suspense
The share of profit of deceased partner is usually transferred to profit and loss suspense account. The reason behind creating a suspense account is that the deceased partner's accounts are already been closed and thus a suspense account is needed to carry over this transaction. It is based on the fact that once an acccount is closed it can't be reopened.

Suggest Corrections

Similar questions

Q. On death of a partner, his executor is paid the share of profits of the dying partner for the relevant period. This payment is recorded in the Profit & Loss ______ Account.

Q. On the death of a partner, his executor is paid the share of profits of the died partner for the relevant period. This payment is recorded in Profit & Loss _______ A/c

On the death of partner, the deceased partner's executor is paid his share of profit for the relevant period. This repayment is recorded in Profit and Loss __________ Account.

Q. The amount is paid to executor of deceased partner for his share of profit. This payment is recorded in profit and loss account.

Accumulated Profits/ Losses & Reserves on the retirement of a partner is shared by the partners in their :

Join BYJU'S Learning Program