Riya, Tiya, Priya were partners in a firm sharing profit in a ratio of 4:3:2. The profit of the firm for the year ending March 31, 2020 was ₹3,60,000. Tiya died on June 30, 2020.
Which account will be debited and by how much on account of share of profit up to the date of death?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Profit and loss suspense A/c ₹30,000
A deceased partner’s share of profit up to the date of death is based on the last year’s profit and is credited to his capital account by debiting the Profit and Loss Suspense Account, since the books are not closed on the date of death.
Period from 1 April to 30 June = 3 months
Tiya’s share = ₹3,60,000 × 3/12 × 3/9 = ₹30,000
Entry: Profit and Loss Suspense A/c Dr. ₹30,000 To Tiya’s Capital A/c ₹30,000
NCERT (2026-27 edition): NCERT (2026-27 edition):
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