Partnership

Retirement/Death

Easy

common

An existing partner of a firm passed away/died during the financial year. His share in estimated trading profits for the intervening period will be transferred to :

Debit of Profit & Loss Suspense Account.

Debit of Profit & Loss Acount.

Credit of Profit & Loss Account.

Credit of Profit & Loss Suspense Account.

✅ Correct Option: 1

Since final accounts are not prepared on the date of death, the deceased partner's estimated share of profit is credited to his Capital A/c and debited to Profit and Loss Suspense A/c.

Entry: Profit and Loss Suspense A/c Dr. To Deceased Partner's Capital A/c.

The Suspense A/c is later closed against the actual profit at the year end.

2025: 29 May Shift 2

Match List-I with List-II

List-I	List-II
(Name of ratios.)	(used for)
(A) old ratio.	(I)distribution of premium for goodwill.
(B) new ratio.	(II) for adjustment of goodwill in death of partner.
(C) sacrificing ratio.	(III) sharing revaluation profits.
(D) gaining ratio.	(IV) sharing future profits.

Choose the correct answer from the options given below:

2022: 30 Aug Shift 2

If a partner retires in the middle of the year his/her share of profit from the date of last balance sheet till the date of retirement will be transferred to : ____

2025: 31 May Shift 1

Murli, Naveen and Omprakesh are partners sharing profits in the ratio of 3 /8 , 1/2 and 1/8 . Murli retires and surrenders 2/3rd of his share in favour of Naveen and the remaining share in favour of Omprakesh. The gaining ratio of the remaining partners is-

2025: 14 May Shift 2

Hanny, Pammy and Sunny are partners sharing profits in the ratio of 3 : 2 : 1. Goodwill is appearing in the books at a value of Rs. 60,000. Pammy retires and at the time of Pammy's retirement, goodwill is valued at Rs. 84,000. Hanny and Sunny decided to share future profits in the ratio of 2:1. Pammy's share of current value of goodwill is-

2025: 26 May Shift 2

Rohan, Bharti and Leela are partners. On the retirement of Rohan, the goodwill already appears in the balance sheet at Rs. 24,000. The goodwill will be written-off:

2022: 20 July Shift 1

At the time of retirement of a Partner if retiring Partner's whole amount is treated as loan, then the total amount is Debited in :

An existing partner of a firm passed away/died during the financial year. His share in estimated trading profits for the intervening period will be transferred to :

Solution

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