Question

Akhil, Bikram and Charu were partners sharing profits and losses in the ratio of 3 : 2 : 1. Bikram died on 30th September, 2025. Loss from the beginning of the accounting year till the date of death was estimated at 3,60,000. Akhil and Charu decided to share future profits in the ratio of 3 : 2 w.e.f. 1st October, 2025.

Pass the necessary journal entry to record Bikram’s share of profit/loss up to the date of death.

Answer 1

Journal Entries
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
2025
Sept 30	Bikram’s Capital A/c ...Dr.		1,20,000	-
	To Profit & Loss Suspense A/c		-	1,20,000
	(Being Bikram's share of the estimated loss debited to his capital account)
Sept 30	Profit & Loss Suspense A/c ...Dr.		1,20,000
	To Akhil’s Capital A/c		-	36,000
	To Charu’s Capital A/c		-	84,000
	(Being the balance of Profit & Loss Suspense account written off to continuing partners in their gaining ratio of 3 : 7)

Working Note:

Calculation of Gaining Ratio:

Old Ratio (Akhil : Bikram : Charu) = 3 : 2 : 1

New Ratio (Akhil : Charu) = 3 : 2

Gaining Share = New Share − Old Share

Akhil’s Gain = `3/5 - 3/6`

= `(3 xx 6)/(5 xx 6) - (3 xx 5)/(6 xx 5)`

= `(18 - 15)/30`

= `3/30`

Charu’s Gain = `2/5 - 1/6`

= `(2 xx 6)/(5 xx 6) - (1 xx 5)/(6 xx 5)`

= `(12 - 5)/30`

= `7/30`

Therefore, the Gaining Ratio between Akhil and Charu is 3 : 7.

Calculation of Bikram’s Share of Loss:

Estimated loss till date of death = ₹ 3,60,000

Bikram’s share proportion = `2/6`

Bikram’s share of loss = `3,60,000 xx 2/6`

= 1,20,000

Division of Deceased Partner’s Loss among Gaining Partners:

Akhil = `1,20,000 xx 3/10`

= 36,000

Akhil = `1,20,000 xx 7/10`

= 84,000