When the deceased partner's share in the estimated loss is calculated for a period from the date of the latest Balance Sheet to the date of death of the partner, then:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Profit and Loss Suspense Account will be credited and Deceased Partner’s Capital Account will be debited.
The deceased partner’s share for the period from the last Balance Sheet to the date of death is brought into the books through the Profit and Loss Suspense Account. For a share of profit, the suspense account is debited and his capital account is credited. A share of loss is the reverse: he must bear it, so his capital account is debited and the suspense account is credited.
Estimated loss of the intervening period:
Deceased Partner’s Capital A/c Dr.
To Profit and Loss Suspense A/c
NCERT (2026-27 edition):
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