A, B and C were partners sharing profits and losses in the ratio of 3 : 2 : 1 . C died on 1st August, 2022 and his share of profit from the beginning - Accountancy MCQ CUET Accountancy 2022 20 July Shift 1 2026 | ExamTest.live

easyMCQCUET Accountancy 2022 20 July Shift 12026Accountancy

1 mark

A, B and C were partners sharing profits and losses in the ratio of 3 : 2 : 1 . C died on 1st August, 2022 and his share of profit from the beginning of the accounting year upto the date of death amounted to Rs. 70,000. C's share of profit will be debited to:

Solution & Step-by-step Explanation

The deceased partner's share of profit estimated up to the date of death is temporarily debited to the Profit and Loss Suspense Account until the end of the accounting year when final accounts are prepared.

Try it yourself before checking the explanation above.

A, B and C were partners sharing profits and losses in the ratio of 3 : 2 : 1 . C died on 1st August, 2022 and his share of profit from the beginning of the accounting year upto the date of death amounted to Rs. 70,000. C's share of profit will be debited to:

Profit and Loss Account

Profit and Loss Adjustment Account

Profit and Loss Appropriation Account

Profit and Loss Suspense Account

Practice with timed mock tests and track your performance across Accountancy.