Question

Debit Balance of Profit & Loss A/c appearing in the Balance Sheet on the death of a partner is debited to ______.

विकल्प

• Deceased Partner’s Capital Account.

• All Partners’ Capital Accounts (Including Deceased Partner).

• Remaining Partner’s Capital Account.

• None of the above.

Answer 1

Debit Balance of Profit & Loss A/c appearing in the Balance Sheet on the death of a partner is debited to all partners’ capital accounts (including the deceased partner).

Explanation:

A debit balance in the Profit & Loss Account represents accumulated losses incurred during the period when all partners were together in the firm. Since these losses belong to the past operations before the partner’s death, they must be shared by all partners in their old profit-sharing ratio. To write off this loss from the assets side of the balance sheet, each partner’s capital account is debited, which correspondingly reduces their respective capital balances.