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

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

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 : How is goodwill recorded when a partner retires?

Option 1: Remaining Partner’s Capital A/cs Dr. (In Gaining Ratio)

 To Retiring Partner’s Capital A/c (with his share of goodwill)

Option 2: Remaining Partner’s Capital A/cs Dr. (In New Ratio)

To Retiring Partner’s Capital A/c (with his share of goodwill)

Option 3: Goodwill A/c          Dr.

To Retiring Partner’s Capital A/c (with his share)

Option 4: Goodwill A/c              Dr.

To All Partner’s Capital A/cs (In Old Ratio)