A B C are partners sharing profits and losses in this ratio of 3:2:1. On 1st November C died, his capital balances after all adjustments was ₹60,000. A and B decided to transfer this amount to his executor's A/c.
What will be the journal entry?
Answer & explanation
Correct answer: option 1
The correct answer is option 1-
C's capital A/c Dr. ₹60,000
To C's executor A/c ₹60,000
Partner's Capital account is closed by debiting his account and his executor account is credited. So, This journal entry is passed-
C's capital A/c Dr. ₹60,000
To C's executor A/c ₹60,000.