Question : In case of loss, The balance of the Profit and Loss Suspense Account is shown on the liabilities side of the Balance Sheet
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 a Profit and Loss Suspense Account will be shown on the liabilities side of the Balance Sheet only if it has a credit balance. Hence, the correct option is 1.
Question : The balance of the Profit and Loss Suspense Account is shown on the assets side of the Balance Sheet.
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
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