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
Answer (1)
25th Jan, 2024
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.
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