Question : Choose the correct Journal entry If the profit-sharing ratio of the remaining or continuing partners does not change in case of profit.
Option 1: Profit and Loss Suspense A/c ...Dr.
To Deceased Partner ‘s Capital A/c
Option 2: Deceased’s partner’s capital account Dr
To profit and loss suspense account
Option 3: Profit and loss appropriation account Dr
To Deceased partner’s capital account
Option 4: Profit and l;oss adjustment account Dr ]
To deceased partner’s capital account
Correct Answer: Profit and Loss Suspense A/c ...Dr.
Solution : Answer = Profit and Loss Suspense A/c ...Dr.
To Deceased Partner's Capital A/c
If there is no change in their profit-sharing ratio then the profit and loss suspense account will be debited and credited deceased partner's capital account. Hence, the correct option is 1.
Question : Choose the correct Journal entry, when deceased partners share is loss:
Question : What journal entry will be made of accumulated profits and losses on the death of partner?
Question : P Q and R are partners sharing profit and losses in the ratio of 5:3:2. R retires and goodwill is valued at Rs 80,000. Adjustments for goodwill will be
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