Maharashtra State BoardHSC Commerce 12th Board Exam
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Select the Most Appropriate Answer from the Alternatives Given Below : - Book Keeping and Accountancy

MCQ

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

Options

  • 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

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Solution

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
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APPEARS IN

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
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