Request a call back

Join NOW to get access to exclusive study material for best results

CBSE Class 12-commerce Answered

 In Retirement of partner Que no.81 Why we will debit z's capital with 34000 and credit y's capital a/c with 34000 .why can't we credit 34000 with the name profit and loss suspense account in z's column.
question image
Asked by Smitakhadayate20 | 15 Jan, 2020, 03:48: PM
answered-by-expert Expert Answer
In the event of death of a partner, the deceased partner’s executors are entitled to his share of profit till the date of death. Such share of Profit from the date of the last Balance Sheet to the date of death is credited to Deceased Partner’s Capital Account and debited to Profit and Loss Suspense Account or Continuing Partners’ Capital Accounts (in Gaining Ratio) as follows:
 
  • When Profit Sharing Ratio of remaining or continuing partners does not change:

           Profit and Loss Suspense A/c     …Dr.

                    To Deceased Partner’s Capital A/c

                     

  • When Profit Sharing ratio of remaining or continuing partners changes:

            Continuing (Gaining) Partner’s Capital A/c    …Dr.          [Gaining Ratio]

                   To Deceased Partner’s Capital A/c

Since, in the mentioned question, the profit sharing ratio among the continuing partners X and Y is changing, the deceased partner's share of profit will be debited to Continuing or Gaining Partner's Capital Account and credited to Deceased Partner's Capital Account as follows:
 
             Y's Capital A/c        Dr.      34,000 (Gaining Partner)
                  To Z's Capital A/c                34,000
Answered by Surabhi Gawade | 15 Jan, 2020, 06:00: PM

Application Videos

Concept Videos

CBSE 12-commerce - Accountancy
Asked by joymotibarman | 15 Jan, 2024, 02:15: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 12-commerce - Accountancy
Asked by divyanshmaheshwari2003 | 04 Nov, 2023, 05:06: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 12-commerce - Accountancy
Asked by deepamonidas1234 | 21 Sep, 2023, 09:14: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 12-commerce - Accountancy
Asked by officialpaperio.man | 31 Jan, 2022, 09:14: AM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 12-commerce - Accountancy
Asked by swapnil292001 | 08 Nov, 2020, 11:22: AM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 12-commerce - Accountancy
Asked by raksha2sanubth | 13 Jul, 2020, 11:22: AM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 12-commerce - Accountancy
Asked by raksha2sanubth | 13 Jul, 2020, 11:19: AM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 12-commerce - Accountancy
Asked by sonowalabhilash | 02 Jul, 2020, 09:46: AM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 12-commerce - Accountancy
Asked by simarjiv10 | 24 Jun, 2020, 11:25: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
Get Latest Study Material for Academic year 24-25 Click here
×