"A creditor of Rs. 100 is not likely to claim his money and is to be written off (creditors of 99,000 were appearing in the balance sheet) at the time of death of a partner"
Journal entry for this would be :
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Sundry Creditors A/c Dr. 100, To Revaluation A/c 100
A creditor who is not likely to claim his money is written off, which reduces a liability. A decrease in a liability is a gain on revaluation: the liability account is debited and the Revaluation Account is credited.
Only the Rs. 100 written off is entered. The other creditors of Rs. 98,900 stay in the balance sheet as they are. On the death of a partner, the gain on revaluation is shared by all the partners, the deceased partner included, in the old ratio.
Note: This question is from NCERT (2026-27). NTA sets numerical questions from NCERT too, so do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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