Question : The balance of the Profit and Loss Suspense Account is shown on the assets 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 the Profit and Loss Suspense Account, which represents the difference between the total profit or loss and the profit or loss already transferred to the capital account, is shown on the assets side of the balance sheet until it is transferred to the capital account. Hence, the correct option is 1.
Question : In case of loss, The balance of the Profit and Loss Suspense Account is shown on the liabilities 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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