Computation of Amount Due to the Retiring Partner

\[\text{Share in Profit}=\frac{\text{Amount due to Retiring Partner}}{\text{Capital of Remaining Partners}}\times
\begin{pmatrix}
\text{Profit from the date of Retirement}/ \\
\text{Death till the date of next Balance Sheet}
\end{pmatrix}\]

1. Transfer of Retiring Partner’s Share of Profit to Their Capital/Current Account:

(When profit is calculated up to the date of retirement and transferred)

Profit and Loss Suspense A/c           ...Dr.

        To Retiring Partner's Capital/Current A/c

(Being the retiring partner's share of profit transferred)

2. Transfer of Profit Back to Profit & Loss Suspense A/c (if required):

(This entry is optional and depends on firm policy or adjustment needs)

Retiring Partner's Capital/Current A/c        ...Dr.

         To Profit and Loss Suspense A/c

(Being the retiring partner's share of profit transferred back to P & L Suspense A/c)