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mediumMCQCUET Accountancy 2025 27 May Shift 22026Accountancy
1 mark

In case a deceased partner's share of profit is calculated during the intervening period, the following Journal Entry will be passed:

  1. A
    Remaining Partners' Capital A/c Dr. to Profit and Loss Suspense A/c
  2. B
    Old Partners' Capital A/c Dr. to Profit and Loss Suspense A/c
  3. C
    Deceased Partner's Capital A/c Dr. to Profit and Loss Suspense A/c
  4. D
    Profit and Loss Suspense A/c Dr. to Deceased Partner's Capital A/c

Solution & Step-by-step Explanation

When a partner passes away during the accounting year, their profit share up to the date of death is estimated. If the continuing profit-sharing ratio remains unchanged, this estimated profit is credited to the Deceased Partner's Capital Account via the Profit and Loss Suspense Account.The journal entry is:Profit and Loss Suspense A/c Dr.To Deceased Partner's Capital A/c

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Try it yourself before checking the explanation above.

In case a deceased partner's share of profit is calculated during the intervening period, the following Journal Entry will be passed:
A
Remaining Partners' Capital A/c Dr. to Profit and Loss Suspense A/c
B
Old Partners' Capital A/c Dr. to Profit and Loss Suspense A/c
C
Deceased Partner's Capital A/c Dr. to Profit and Loss Suspense A/c
D
Profit and Loss Suspense A/c Dr. to Deceased Partner's Capital A/c

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