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Kumar, Verma and Naresh Were Partners in a Firm Sharing Profit and Loss in the Ratio of 3 : 2 : 2. on 23rd January, - Accountancy

Numerical

Kumar, Verma and Naresh were partners in a firm sharing Profit and Loss in the ratio of 3 : 2 : 2. On 23rd January, 2015 Verma died. Verma's share of profit till the date of his death was calculated at ₹ 2,350. Pass necessary Journal entry for the same in the books of the firm.

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Solution

The Journal entry for transferring Verma’s share of profit to his capital account is given below

Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

 

Profit and Loss Suspense A/c

Dr.

 

2,350

 

 

To Verma’ Capital A/c

 

 

2,350

 

(Verma’s share of profit dispensed through his Capital Account)

 

 

 

Concept: Retirement and Death of a Partner - Calculation of New Profit Sharing Ratio
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APPEARS IN

TS Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 1
Chapter 6 Retirement/Death of a Partner
Exercise | Q 55 | Page 93
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