Question : Choose the correct Journal entry, when deceased partners share is loss:
Option 1: Deceased Partner’s Capital A/c ...Dr.
To Profit and Loss Suspense A/c
Option 2: Deceased partner’s capital account Dr
To profit and loss Adjustment Account
Option 3: Deceased partner’s capital Account Dr
To profit and loss account
Option 4: None of the above
Correct Answer: Deceased Partner’s Capital A/c ...Dr.
Solution : Answer = Deceased Partner’s Capital A/c Dr.
In case of loss of profit and loss, suspense accounts will be credited and the deceased partners' capital will be debited. Hence, the correct option is 1.
Question : Choose the correct Journal entry If the profit-sharing ratio of the remaining or continuing partners does not change in case of profit.
Question : What journal entry will be made of accumulated profits and losses on the death of partner?
Question : How is goodwill recorded when a partner retires?
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