Plz solve Qu 14
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In case of Death of Partner , His share of profit which is to be given to his executors is recorded in Profit and loss suspense A/c .On payment to his executors , Partners' Executors account is debited and Cash is credited This share is calculated by multiplying Profit with his PSR.
Journal entries are as follows :
Therefore in both the cases i.e (i) and (ii) given in question Profit share payment will be recorded in Executors A/c
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In case of Death of Partner , His share of profit which is to be given to his executors is recorded in Profit and loss suspense A/c .On payment to his executors , Partners' Executors account is debited and Cash is credited This share is calculated by multiplying Profit with his PSR.
Journal entries are as follows :
| Profit and Loss Suspense A/c | Dr. | xxx | |
| To Deceased Partner's Capital A/c | xxx | ||
| (Being profit till death credited) | |||
| Deceased Partner's Capital A/c | Dr. | xxx | |
| To Deceased Partner's Executors A/c | xxx | ||
| (Being final amount transferred to deceased partner executor's account) | |||
| Deceased Partner's Executor's A/c | Dr. | xxx | |
| To Cash A/c | xxx | ||
| (Being payment made) | |||
Therefore in both the cases i.e (i) and (ii) given in question Profit share payment will be recorded in Executors A/c
Hope this helps
Please get back to us for ny query
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