Question

what is the nature of advertisment suspense a/c ?
why is it treated as an asset ?

Answer 1

Dear Student,

Advertisement Suspense is a deferred revenue expenditure which is considered as an accumulated loss for a partnership firm. It exists on the Assets side of the Balance Sheet.
It is a debit balance in the Profit and Loss Account (being debit in nature, therefore, appears on the Assets side) that has not been distributed among partners.

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