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
On a partner’s death, the balance in his capital account is the amount due to his legal representatives. The capital account is closed by debiting it, and the executor’s account is credited until the amount is paid.
Entry:
C’s capital A/c Dr. ₹60,000
To C’s executor A/c ₹60,000
NCERT (2026-27 edition): NCERT (2026-27 edition):
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