A,B, and C are partners in a firm. C died in a car accident on 31st march, 2019. The accountant gave a credit to C for his share in profit. Was the accountant correct in doing so ??
Dear student
yess, accountant is right in doing so. died partner share of profit earned from the beginning of the year to the date of death is transferred to died's partners capital account. and his share of profit is tranferred to his capital account by profit and loss suspense account.
Regards
yess, accountant is right in doing so. died partner share of profit earned from the beginning of the year to the date of death is transferred to died's partners capital account. and his share of profit is tranferred to his capital account by profit and loss suspense account.
Regards