Practicing Success
Practicing Success
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| On the death of a partner, the executor is paid the profits of the deceased partner for the relevant period. This payment is recorded in Profit & Loss ...................A/c. |
Adjustment Appropriation Suspense Reserve |
| Suspense |
| For being deceased partner’s share of profits for the intervening period to books of account, the following journal entry is recorded. Profit and Loss (Supense) A/c Dr. To Deceased Partner’s Capital A/c (Share of profit for the intervening period) Later Profit and Loss Suspense account is closed by transferring the account to Gaining Partners' Capital Account in their gaining ratio. The journal entry is: (ii) Gaining Partners Capital A/c [In gaining ratio] To Profit and Loss Suspense A/c (P&L Suspense account transferred). |
