Question

X, Y and Z were partners in a firm. The firm closes its books on 31st March every year. On 31st December 2021, X died. The partnership deed provided that the share of deceased partner in the profit of the firm till the date of his death will be calculated on the basis of last year's profit. The profit for the year ended 31.3.2021 was ₹ 6,00,000. Calculate X's share in the profit of the firm till the date of his death and pass the necessary journal entry for the same in the books of the firm. 

Answer 1

X's share in profit will be calculated for:

(April 2021 to 31 Dec. 2021) = 9 months

Last year's profit = ₹ 6,00,000

X's share in profit = ₹ `6,00,000 xx 1/3 xx 9/12` = ₹ 1,50,000

Date	Particular	L.F.	Dr. (₹)	Cr. (₹)
	Profit and Loss Suspense A/c   ...Dr.		1,50,000	-
	To X's capital A/c		-	1,50,000
	(Being a share of profit of x transferred.)