Identify that account to which share of profit of a deceased partner is debited from the date of the last Balance Sheet to the date of his/her death (assuming no change in profit sharing ratio of remaining partners).
- AHis capital account
- BProfit and loss account
- CProfit and Loss Suspense account
- DTrading account
Solution & Step-by-step Explanation
When a partner dies mid-year, their estimated share of profits accrued up to the date of death is given to them by making the following journal entry:
Hence, the account being debited is the Profit and Loss Suspense Account.
Hence, the account being debited is the Profit and Loss Suspense Account.