Profit and Loss Suspense Account is shown in the new balance sheet on _____ side.
Q.1 (B) (2) Profit and Loss Suspense Account is shown in the new balance sheet on _____ side.
A. Debit
B. Credit
C. Assets
D. Liabilities
1 answer
Best answer
Answer: C. Assets
Answer: (c) Assets
Profit and Loss Suspense Account is debited with the deceased (or retiring) partner's share of current year's profit. Its debit balance is shown on the assets side of the new balance sheet until it is closed at the end of the year.
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· 28 Oct 2026
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