A, B & C are partners sharing profits in the ratio of 3:2:1. C died on 1st July, 2023. On this date, final accounts were prepared to ascertain profits for the period. It resulted in a profit of ₹1,75,000 to the firm. To give effect to the above:

Profit and loss A/c will be debited

The correct answer is option 1- Profit and loss A/c will be debited.

Given that the final accounts are being prepared to ascertain profits for the period, profit and loss account is the correct answer.

Profit and loss account is prepared to know the profit of the firm after debiting all expense and crediting all incomes of the firm. The journal entry for this- Profit and loss A/c Dr. To Net profit.
When this profit is transferred to profit and loss appropriation account and after giving partners their related salary, commission etc, the remaining profit is divisible profit which will be distributed between partners.