Question : In case of loss profit and loss, suspense is transferred to the credit of the Profit and Loss Appropriation Account at the end of the year
Option 1: True
Option 2: False
Option 3: Can’t say
Option 4: None of the above
Correct Answer: True
Solution : Answer = True
The balance of the Profit and Loss Suspense Account is shown on the liabilities side of the Balance Sheet and is transferred to the credit of the Profit and Loss Appropriation Account at the end of the year.
Hence, the correct option is 1.
Question : The profit and loss suspense account is transferred to the debit of the Profit and Loss Appropriation Account at the end of the year
Question : In case of loss, The balance of the Profit and Loss Suspense Account is shown on the liabilities side of the Balance Sheet
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