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    The partners in a firm are A, B and C. The books are closed on March 31 each year. B died on June 30, 2009. According to the agreement, the share of profits of a deceased partner up to their date of death is calculated based on the average profit of the last five years. B's share of profits until the date of death is Rs. 900. The necessary journal entry would be to debit the profit and loss suspense account for Rs. 900 and credit B's capital account for Rs. 900.

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    The partners in a firm are A, B and C. The books are closed on March 31 each year. B died on June 30, 2009. According to the agreement, the share of profits of a deceased partner up to their date of death is calculated based on the average profit of the last five years. B's share of profits until the date of death is Rs. 900. The necessary journal entry would be to debit the profit and loss suspense account for Rs. 900 and credit B's capital account for Rs. 900.

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    The partners in a firm are A, B and C. The books are closed on March 31 each year. B died on June 30, 2009. According to the agreement, the share of profits of a deceased partner up to their date of death is calculated based on the average profit of the last five years. B's share of profits until the date of death is Rs. 900. The necessary journal entry would be to debit the profit and loss suspense account for Rs. 900 and credit B's capital account for Rs. 900.

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    firoozdasman
    The partners in a firm are A, B and C. The books are closed on March 31 each year. B died on June 30, 2009. According to the agreement, the share of profits of a deceased partner up to their date of death is calculated based on the average profit of the last five years. B's share of profits until the date of death is Rs. 900. The necessary journal entry would be to debit the profit and loss suspense account for Rs. 900 and credit B's capital account for Rs. 900.

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    of 5

    9/23/23, 3:57 PM A, B and C Are Partners in a Firm Whose Books Are Closed on March 31st Each Year.

    h Year. B Died on 30th June 2009 and According t…

    Commerce (English
    Question Papers Textbook Solutions MCQ Online Mock Tests Important Solutions Co
    Medium) Class 12
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    -39%

    -39%

    -40%

    A, B and C are partners in a firm whose books are closed on March 31st each year. B

    died on 30th June 2009 and according to the agreement, the share of profits of a
    -31%

    deceased partner up to the date of death is to be calculated on the basis of the average
    profit for the last five year. The net profits for the last 5 years have been: 2005 , Rs
    14,000;
    End 2006
    of sale., Last
    Rs 18,000; 2007, Rs 16,000; 2008, Rs 10,000 (loss) and 2009, Rs 16,000.
    Chance
    Calculate B’s share of the profits upto the date of death and pass necessary journal
    Intersport Kuwait
    entry.

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    SOLUTION

    https://www.shaalaa.com/question-bank-solutions/a-b-c-are-partners-firm-whose-books-are-closed-march-31st-each-year-b-died-30th-june-2009-accor… 1/5
    9/23/23, 3:57 PM A, B and C Are Partners in a Firm Whose Books Are Closed on March 31st Each Year. B Died on 30th June 2009 and According t…

    B’s Profit Share = Average Profit For last 5 years × Time × A's Share
    = Rs10, 800
    Commerce (English 3 1
    ∴ B's Class
    Medium) Profit
    12 Share=10, 800 ×
    Question Papers Textbook
    × = Rs 900 MCQ Online Mock Tests
    Solutions Important Solutions Co
    12 3

    Journal

    Debit Credit

    Date Particulars L.F. Amount Amount

    Rs Rs

    Profit and Loss Suspense A/c Dr. 900

    To B’s Capital A/c 900

    (Profit share to the deceased


    partner)

    Rs14, 000 + Rs18, 000 + Rs16, 000 − Rs10, 000 + Rs16, 000
    Average Profit=
    5

    =Rs10, 800

    B’s share of profit (from 31st March 2008 to 30th June, 2009) = Rs 10,800 × 3/12 × 2/6 =
    Rs 900.

    Debit Credit

    Date Particulars L.F. Amount Amount

    Rs Rs
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    Profit & Loss Suspense A/c Dr. 900

    To B’s Capital A/c 900

    https://www.shaalaa.com/question-bank-solutions/a-b-c-are-partners-firm-whose-books-are-closed-march-31st-each-year-b-died-30th-june-2009-accor… 2/5
    9/23/23, 3:57 PM A, B and C Are Partners in a Firm Whose Books Are Closed on March 31st Each Year. B Died on 30th June 2009 and According t…

    (Being distribution of profit to the deceased partner


    upto the date of death)
    Commerce (English
    Medium) Class 12
    Question Papers Textbook Solutions MCQ Online Mock Tests Important Solutions Co

    Concept: Retirement Or Death of a Partner - Preparation of Loan Account of the Retiring Partner

    Report Error Is there an error in this question or solution?

    Q 13.1 Q 13.2 Q 14

    2009-2010 (March)

    APPEARS IN

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    9/23/23, 3:57 PM A, B and C Are Partners in a Firm Whose Books Are Closed on March 31st Each Year. B Died on 30th June 2009 and According t…

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    9/23/23, 3:57 PM A, B and C Are Partners in a Firm Whose Books Are Closed on March 31st Each Year. B Died on 30th June 2009 and According t…

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