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easyMCQCUET Accountancy 2025 22 May Shift 22026Accountancy
1 mark

The share of loss of a deceased partner, calculated on the basis of previous year's profit/loss, is:

  1. A
    Credited to his capital account.
  2. B
    Debited to his capital account.
  3. C
    Debited to profit and loss suspense account.
  4. D
    Debited to profit and loss account.

Solution & Step-by-step Explanation

The sharing of an interim loss reduces the deceased partner's capital balance. Hence, their share of loss up to the date of death is debited to the Deceased Partner's Capital Account and credited to the Profit and Loss Suspense Account.The adjusting entry is:

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The share of loss of a deceased partner, calculated on the basis of previous year's profit/loss, is:
A
Credited to his capital account.
B
Debited to his capital account.
C
Debited to profit and loss suspense account.
D
Debited to profit and loss account.

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