Namita, Narendra and Kunwar were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$ : $\displaystyle 1$ : 1. The firm closes its books on 31st March every year. Kunwar died on 30th September, 2025. His share in the profits of the firm from 1st April, $\displaystyle 2025$ to 30th September, $\displaystyle 2025$ was calculated as per the provisions of the partnership deed which amounted to ₹ $\displaystyle 15$,600. On the date of Kunwar's death, the Balance Sheet of the firm showed General Reserve of $\displaystyle 40,000$ and Profit and Loss Account (Dr.) $\displaystyle 80$,000. s necessary journal entries on Kunwar's death in the books of the firm.

Books of Namita, Narendra and Kunwar Journal Date Particulars L Dr. Cr. . Amount(₹) Amount(₹) F. $\displaystyle 2025$ Sept. $\displaystyle 30$ Profit and Loss Suspense A/c Dr. $\displaystyle 15,600$ To Kunwar’s Capital A/c $\displaystyle 15,600$ ( Kunwar’s share in profits transferred to his capital A/c) ,, General Reserve A/c Dr. $\displaystyle 40,000$ To Namita’s Capital A/c $\displaystyle 24,000$ To Narendra’s Capital A/c $\displaystyle 8,000$ To Kunwar’s Capital A/c $\displaystyle 8,000$ (General reserve transferred to all partners’ capital A/cs in old ratio) ,, Namita’s Capital A/c Dr. $\displaystyle 48,000$ Narendra’s Capital A/c Dr. $\displaystyle 16,000$ Kunwar’s Capital A/c Dr. $\displaystyle 16,000$ $\displaystyle 80,000$ To Profit and Loss A/c (Dr. balance of profit and loss A/c transferred to all partners in old ratio)