On the death of a partner during the year, his share of profit is debited to which account out of the following?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Profit and Loss Suspense Account
When a partner dies during the year, his share of profit from the last balance sheet date to the date of death is credited to his capital account and debited to Profit and Loss Suspense Account, because the year's accounts are not yet closed. The suspense account is later closed by transferring it to the gaining partners' capital accounts.
Option (1) Profit and Loss Account — Incorrect. The year's Profit and Loss Account is not prepared on the date of death.
Option (2) Profit and Loss Appropriation Account — Incorrect. That account is prepared only at the year end.
Option (4) Deceased Partner's Capital Account — Incorrect. His capital account is credited with the share, not debited.
Note: The book prints "Profit and Loss (Supense) A/c"; it means Profit and Loss Suspense Account.
NCERT (2026-27 edition):
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