Question : A, B and C were partners sharing profits and losses in the ratio of 3: 2: 1.
B died on 30th June 2020. Loss from the beginning of the accounting year till the date of his death was estimated at Rs. 1,80,000. A and C decided to share future profits in the ratio of 3: 2 w.e.f. 1st April, 2020.

Choose the correct  Journal entry to record B's share of profit/loss up to the date of death.

Option 1: Profit and Loss Suspense A/c ...Dr. 60,000

To A’s Capital A/c 18,000

To C;s Capital A/c 42,000

Option 2: B’s Capital A/c ...Dr. 60,000

To A’s  Capital A/c 18,000

To C’s Capital A/c 42,000

Option 3: Both 1 and 2

Option 4: Neither 1 nor 2

Question : What journal entry will be made of accumulated profits and losses on the death of partner? 

Option 1: Deceased Partner’s Capital A/c      Dr.

      To Profit and Loss A/c 

Option 2: Profit and Loss A/c             Dr.

To Deceased Partner’s Capital A/c 

Option 3: Deceased Partner’s Capital A/c      Dr.

  To Profit and Loss Suspense A/c 

Option 4: Profit and Loss Suspense A/c     Dr.

To Deceased Partner’s Capital A/c 

Question : Choose the correct Journal entry, when deceased partners share is loss:

Option 1: Deceased Partner’s  Capital A/c ...Dr.

To Profit and Loss Suspense A/c

Option 2: Deceased partner’s capital account Dr 

To profit and loss Adjustment Account

Option 3: Deceased partner’s capital Account Dr 

To profit and loss account 

Option 4: None of the above

Question : Choose the correct Journal entry, when deceased partners share is loss:

Option 1: Deceased Partner’s  Capital A/c ...Dr.

To Profit and Loss Suspense A/c

Option 2: Deceased partner’s capital account Dr 

To profit and loss Adjustment Account

Option 3: Deceased partner’s capital Account Dr 

To profit and loss account 

Option 4: None of the above

Question : Choose the correct Journal entry If the profit-sharing ratio of the remaining or continuing partners does not change in case of profit.

Option 1: Profit and Loss Suspense A/c ...Dr.

To Deceased Partner ‘s Capital A/c

Option 2: Deceased’s partner’s capital account Dr 

To profit and loss suspense account 

Option 3: Profit and loss appropriation account Dr 

To Deceased partner’s capital account

Option 4: Profit and l;oss  adjustment account Dr ]

      To deceased  partner’s capital account