Maharashtra State BoardHSC Commerce 12th Board Exam
Advertisement Remove all ads

Select the Most Appropriate Answer from the Alternatives Given Below : - Book Keeping and Accountancy


Select the most appropriate answer from the alternatives given below:
Share of profit of a deceased partner till the date of death is _____________.


  • debited to P/L Adjustment A/c

  • credited to P/L Adjustment A/c

  • debited to P/L Suspense A/c

  • credited to P/L Suspense A/c

Advertisement Remove all ads


Share of profit of a deceased partner till the date of death is debited to P/L Suspense A/c.

Explanation: The executor of a deceased partner, apart from the other things, is also entitled to a share in profits till the date of his death. Also, it is not possible for any firm to close its books of accounts at any time (during an accounting period). Therefore, in case of death, profits are calculated either on the basis of time or on the basis of sales or turnover. The amount of profit or loss so ascertained is dispensed to the deceased partner through the Profit and Loss Suspense Account.

Concept: Retirement Or Death of a Partner - Adjustment of Capitals
  Is there an error in this question or solution?
Advertisement Remove all ads


Micheal Vaz Accounts - Book Keeping and Accountancy HSC 12th Standard Maharashtra State Board
Chapter 5 Reconstitution of Partnership (Death of Partner)
Exercise | Q 3 | Page 140
Advertisement Remove all ads
Advertisement Remove all ads

View all notifications

      Forgot password?
View in app×