Question

A, B and C were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 25th February, 2019, B died. B’s share of profit till the date of his death was calculated at 5,000.

Pass the necessary journal entry for the same in the books of the firm.

Answer 1

Journal Entry
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
2019 Feb 25	Profit & Loss Suspense A/c ...Dr.		5,000	-
	To B’s Capital A/c		-	5,000
	(Being B’s share of profit up to the date of his death credited to his capital account)