Question

Namita, Narendra and Kunwar were partners in a firm sharing profits and losses in the ratio of 3 : 1 : 1. The firm closes its books on 31^st March every year. Kunwar died on 30^th September, 2025. His share in the profits of the firm from 1^st April, 2025 to 30^th September, 2025 was calculated as per the provisions of the partnership deed which amounted to ₹ 15,600. On the date of Kunwar’s death, the Balance Sheet of the firm showed General Reserve of ₹ 40,000 and Profit and Loss Account (Dr.) ₹ 80,000.

Pass the necessary journal entries on Kunwar’s death in the books of the firm.

Answer 1

Journal Entries In the books of the firm on the death of Kunwar
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
2025
Sep 30	Profit and Loss Suspense A/c   ...Dr.		15,600
	To Kunwar’s Capital A/c			15,600
	(Being Kunwar’s share of profit till death credited)
Sep 30	General Reserve A/c   ...Dr.		40,000
	To Namita’s Capital A/c (3/5)			24,000
	To Narendra’s Capital A/c (1/5)			8,000
	To Kunwar’s Capital A/c (1/5)			8,000
	(Being General Reserve distributed among all partners)
Sep 30	Namita’s Capital A/c (3/5)   ...Dr.		48,000
	Narendra’s Capital A/c (1/5)   ...Dr.		16,000
	Kunwar’s Capital A/c (1/5)   ...Dr.		16,000
	To Profit and Loss A/c			80,000
	(Being accumulated loss debited to all partners)

Working Note:

Profit Sharing Ratio: 3 : 1 : 1 (Total = 5)

General Reserve Distribution:

• Namita: 40,000 × `3/5` = 24,000
• Narendra: 40,000 × `3/5` = 8,000
• Kunwar: 40,000 × `1/5` = 8,000

Profit and Loss (Dr.) Distribution:

• Namita: 80,000 × `3/5` = 48,000
• Narendra: 80,000 × `1/5` = 16,000
• Kunwar: 80,000 × `1/5` = 16,000