Ram, a partner, died on 31st March, 2022. His share of loss was ₹10,000. Following journal entry will be passed in the books of Account to record the above adjustment.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Ram’s Capital A/c Dr 10,000 To P & L suspense A/c 10,000
Ram’s share of the loss up to his death must be debited to his capital account, because a loss reduces what is due to him. As the books are not closed on the date of death, the other side goes to the Profit and Loss Suspense Account, which is later closed by transfer to the gaining partners.
Ram’s Capital A/c Dr. ₹10,000 — To Profit and Loss Suspense A/c ₹10,000
This is the reverse of the book’s entry for a deceased partner’s share of profit.
NCERT (2026-27 edition):
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