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Question

Accountancy Question on Balance sheet statement

If a partner retires in the middle of the year his/her share of profit from the date of last balance sheet till the date of retirement will be transferred to :

A

Profit & Loss A/C credit side

B

Profit & Loss suspense A/C debit side

C

Retiring partners capital A/C debit side

D

Profit & Loss suspense A/C credit side

Answer

Profit & Loss suspense A/C debit side

Explanation

Solution

The correct option is (B): Profit & Loss suspense A/C debit side