Partnership

Retirement/Death

Easy

common

A, B and C partners in a firm sharing profits & losses in the ratio of 3:2:1. C died on 13th June 2025, C's share of profit till the date of his death will be debited to ?

Profit & Loss A/c

Profit & Loss Suspense A/c

Profit & Loss Appropriation A/c

Trading A/c

✅ Correct Option: 2

The deceased partner's share of profit from the last balance sheet date to the date of death is only an estimate, so it is debited to Profit and Loss Suspense A/c and credited to his capital account.

2026: 29 May Shift 1

Lata, Shivangi and Vineeta are partners in a firm sharing profits in the ratio of 5 : 3 : 2. Shivangi retires. After making all adjustments relating to revaluation, goodwill and accumulated profit etc., the capital accounts of Lata and Vineeta showed a credit balance of Rs. 3,20,000 and Rs. 2,40,000 respectively. It was decided to adjust the capitals of Lata and Vineeta in their new profit sharing ratio. What would be the journal entries for bringing in or withdrawal of the necessary amounts involved?

2025: 30 May Shift 1

A, B and C are partners in a firm. If B is being retired from the firm, what would be its effect?

2026: 21 May Shift 2

Match the LIST-I with LIST-II

LIST-I		LIST-II
A.	Profit and loss Suspense A/c	I. Admission or Retirement of a partner
B.	The outgoing partner has an option to receive either interest @ 6% p.a. till the date of payment or such share of profits which has been earned with his/her money (i.e. based on capital ratio)	II. Hidden Goodwill
C.	Revaluation A/c	III. Section 37 of the Indian Partnership Act 1932
D.	It has to be inferred from the arrangement of the capital and profit sharing ratio	IV. Death of a partner

Choose the correct answer from the options given below:

2025: 29 May Shift 2

On the retirement of an existing partner, an increase in the value of a liability will be credited to :-

2022: 15 July Shift 2

A, B and C are partners sharing profits in the ratio of 2:3:1. B retries, then new profit sharing ratio between A and C will be

2025: 13 May Shift 1

On the Death of a Partner, which account is debited for his/her share of profit for the intervening period, i.e., the period from date of the last balance sheet till the date of the partner's death:

A, B and C partners in a firm sharing profits & losses in the ratio of 3:2:1. C died on 13th June 2025, C's share of profit till the date of his death will be debited to ?

Solution

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