Question : A, B and C were partners sharing profits and losses in the ratio of 3: 2: 1. B died on 30th June 2020. Loss from the beginning of the accounting year till the date of his death was estimated at Rs. 1,80,000. A and C decided to share future profits in the ratio of 3: 2 w.e.f. 1st April, 2020.
Choose the correct Journal entry to record B's share of profit/loss up to the date of death.
Option 1: Profit and Loss Suspense A/c ...Dr. 60,000
To A’s Capital A/c 18,000
To C;s Capital A/c 42,000
Option 2: B’s Capital A/c ...Dr. 60,000
To C’s Capital A/c 42,000
Option 3: Both 1 and 2
Option 4: Neither 1 nor 2
Correct Answer: B’s Capital A/c ...Dr. 60,000
Solution : Answer = B’s Capital A/c ...Dr. 60,000, To A’s Capital A/c 18,000,To C’s Capital A/c 42,000
G.Ratio= N.R- O.R A= $\frac{3}{5}-\frac{3}{6}=\frac{18-15}{30}=\frac{3}{30}$ C= $\frac{2}{5}-\frac{1}{6}=\frac{12-5}{30}=\frac{7}{30}$= 3:7 In case of loss: B's capital a/c Dr 60,000[1,80,000×$\frac{2}{6}$] To A's capital a/c 18,000 To C's capital a/c 42,000 Hence, the correct option is 2.
Question : A, B and C were partners sharing profits and losses in the ratio of 3: 2: 1. B died on 30th June 2020. Loss from the beginning of the accounting year till the date of his death was estimated at Rs. 1,80,000. A and C decided to share future profits in the ratio of 3: 2
Question : What journal entry will be made of accumulated profits and losses on the death of partner?
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Question : Choose the correct Journal entry If the profit-sharing ratio of the remaining or continuing partners does not change in case of profit.
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