Question

Preet, Reet, and Meet were partners sharing profits and losses in the ratio of 5:3:2.Peet died on 31st Oct,2019. Profit of the firm for the period upto the date of death was estimated as Rs.2,00,000. Pass the journal entry solution

Answer 1

Answer:

Preet‘s share of profit =200000*5/10=100000

profit and loss suspense a/c dr 100000

                To preet’s capital a/c.   100000

(preet’s share of profit transferred to her capital a/c)