Question : What journal entry will be made of accumulated profits and losses on the death of partner?
Option 1: Deceased Partner’s Capital A/c Dr.
To Profit and Loss A/c
Option 2: Profit and Loss A/c Dr.
To Deceased Partner’s Capital A/c
Option 3: Deceased Partner’s Capital A/c Dr.
To Profit and Loss Suspense A/c
Option 4: Profit and Loss Suspense A/c Dr.
Correct Answer: Profit and Loss Suspense A/c Dr.
Solution : Profit and Loss Suspense A/c Dr.
Hence the correct answer is option 4.
Question : Choose the correct Journal entry, when deceased partners share is loss:
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 : 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
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