Death of a Partner | Part 2 - Accounting of Profit Share | Class 12 Accounts | CA Pradeep Assiwal

Death of a Partner: Accounting Treatment of Profit Till Date of Death 🎯 | Chapter 6 Class 12 Accounts & CA Foundation Master the exact journal entries and ledger accounting for a deceased partner's mid-year profit! Learn when to debit P&L Suspense vs Gaining Partners, avoid balance sheet presentation traps, and solve board exam level numerical questions! Hey Commerce Students! 👋 Welcome back to the session. In this video, we are mastering the absolute core journal adjustment for Chapter 6: Death of a Partner — the Accounting Treatment of the Deceased Partner's Share of Profit till the date of death. Calculating the profit share is only half the battle; knowing exactly how to record it in the books of accounts is what guarantees your marks in the board exams. Many students lose marks because they blindly pass every profit entry through the Profit & Loss Suspense Account, completely ignoring whether the continuing partners' profit-sharing ratio has changed. In this lesson, we break down the dual accounting entry framework, map how these balances flow into the Deceased Partner’s Capital Account, and handle the final Balance Sheet presentation! 📖 What You Will Learn in This Video: 📌 The Accounting Ledger Mechanics: How intermediate mid-year profit is credited to the Deceased Partner's Capital Account to find their final settlement amount. 📌 Case 1: When Continuing PSR Remains Unchanged Passing the entry using the Profit & Loss Suspense Account. Entry: Profit & Loss Suspense A/c Dr. To Deceased Partner's Capital A/c 📌 Case 2: When Continuing PSR Changes (The Advanced Trap) Why P&L Suspense is strictly banned if continuing partners alter their ratio! Adjusting the profit directly through capital accounts using the Gaining Ratio. Entry: Gaining Partners' Capital A/c Dr. To Deceased Partner's Capital A/c 📌 Balance Sheet Presentation (New Asset Rules): Where does the debit balance of the Profit & Loss Suspense Account go if you have to prepare the new firm's Balance Sheet? 📌 Comprehensive Question Walkthrough: Solving high-yield practical problems requiring both journal entries and Ledger accounts from scratch. 📚 Resources & Free Downloads: 📂 Join our Telegram Channel for the Death of a Partner Formula Cheat Sheet: [soon] 📂 Download the Chapter 6 Profit Calculations Worksheet & Solutions: [soon] 💡 Teacher's Pro-Tip: Always read the question carefully to see if the continuing partners changed their profit-sharing ratio after the death. If the ratio changes, using the Profit & Loss Suspense A/c is completely wrong! You must debit the gaining partners in their gaining ratio and credit the deceased partner instead. This distinction is where 90% of students lose their marks! If this video simplified these calculations for you, please hit the 👍 Like button, Share this lecture with your commerce classmates. 💬 Solve the homework challenge problem given at the end of the video and post your final profit share amount in the comments below! Let's see who calculates it perfectly. 👇 #DeathOfAPartner #DeceasedPartnerProfit #ProfitAndLossSuspense #Class12Accountancy #CommerceClass12 #PartnershipAccounts #TimeBasisProfit #SalesBasisProfit #AccountancyTutorials #CBSECommerce #CAFoundationAccounts #TSGrewalSolutions #DKGoelAccounts #BoardExamPreparation #AccountingAdjustments #DeathOfAPartner #AccountingTreatment #ProfitAndLossSuspense #Class12Accountancy #CommerceClass12 #PartnershipAccounts #PartnersCapitalAccount #JournalEntriesAccounts #AccountancyTutorials #CBSECommerce #CAFoundationAccounts #TSGrewalSolutions #DKGoelAccounts #BoardExamPreparation #AccountingAdjustments