Question

Kavya, Manya and Navita were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. The profit of the firm ending on 31st March, 2025 was 1,80,000. Navita dies on 30th June, 2025. As per the agreement, her share of profit from the last Balance Sheet date till the date of death will be calculated on the basis of last year’s profit. Determine the missing values in the following Journal entry:

JOURNAL
Date	Particulars	L.F.	Dr. (₹)	Cr. (₹)
June 30	Profit & Loss Suspense A/c   ...Dr.		?
	To Navita’s Capital A/c			?
	(Navita’s share of profit till the date of her death credited)

Answer 1

JOURNAL
Date	Particulars	L.F.	Dr. (₹)	Cr. (₹)
2025 June 30	Profit & Loss Suspense A/c   ...Dr.		9,000
	To Navita’s Capital A/c			9,000
	(Navita’s share of profit till the date of her death credited)

Working Note:

Calculation of Navita’s Share of Profit:

Total profit for the last year = ₹ 1,80,000

Period (1st April, 2025 to 30th June, 2025) = 3 Months

Profit for 3 Months (Taking profit of 2024-25 as base) = `₹ 1,80,000 × 3/12`

= ₹ 45,000

Navita’s share of profit = `₹ 45,000 × 2/10`

= ₹ 9,000.