What journal entry will be recorded for

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Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

What journal entry will be recorded for deceased partner’s share in profit from the closure of last balance sheet till the date of his death?

Options:

Profit and Loss A/c Dr.
To Deceased Partner’s Capital A/c
(Partner share of profit recorded)

Deceased Partner’s Capital A/c Dr.
To Profit and Loss A/c
(Partner share of profit recorded)

Deceased Partner’s Capital A/c Dr.
To Profit and Loss Suspense A/c
(Partner share of profit recorded)

Profit and Loss Suspense A/c Dr.
To Deceased Partner’s Capital A/c
(Partner share of profit recorded)

Correct Answer:

Profit and Loss Suspense A/c Dr.
To Deceased Partner’s Capital A/c
(Partner share of profit recorded)

Explanation:

Profit and Loss Suspense A/c Dr.
To Deceased Partner’s Capital A/c