Question : Amounts are debited to the deceased partner’s capital account, find out odd one
Option 1: His share of loss on revaluation of the assets and reassessment of liabilities, if any.
Option 2: His share of accumulated losses.
Option 3: His drawings.
Option 4: His share of reserve fund
Correct Answer: His share of reserve fund
Solution : Answer = His share of the reserve fund
When a partner passes away, their capital account is typically debited for their share of losses, accumulated losses, and drawings. However, the reserve fund is a separate account and is not usually debited to the deceased partner's capital account upon their death. Hence, the correct option is 4.
Question : Amount in the credit side of the deceased Partner& Capital Account. Find out the odd one.
Option 1: His share of profit earned from the beginning of the financial year up to the date of death.
Option 2: His share of gain (profit) on revaluation of assets and reassessment of liabilities.
Option 3: His share of accumulated losses
Option 4: Credit balance of capital account
Question : Which of the following statements is incorrect?
Option 1: Deceased partner is entitled to his share of gain (profit) that has arisen up to the date of death.
Option 2: Deceased’s partner will also bear the loss that may have been incurred up to the date of death.
Option 3: His share in the gain (profit) or loss on revaluation of assets and reassessment of liabilities is credited or debited to his Capital Account.
Option 4: All 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
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