Deceased Partner’s Share

Correct answer: C. ₹49,000

Amount payable to the deceased partner = capital balance + share of final profit = ₹45,000 + ₹4,000 = ₹49,000. Therefore, option C is correct. Remember that a profit share is added to the capital balance; any loss or other adjustment would be treated separately.

Correct answer: A. The partnership right ceases after death

A partner’s relationship with the firm ends on death, so the deceased partner has no right to profits earned after the date of death. The deceased partner is generally credited with the profit up to the date of death, calculated on the basis of time or past profits. A change in capital or a banking rule does not determine this treatment. Exam tip: calculate the deceased partner’s profit share only up to the date of death.

Correct answer: A. Credited to the Capital Account

Undistributed profit represents income earned by the firm. The deceased partner’s share up to the date of death is credited to the partner’s Capital Account, increasing the amount payable to the deceased partner’s estate. Therefore, option A is correct; the amount is not credited only to the surviving partners’ accounts. Exam tip: While calculating the amount due to a deceased partner, remember to credit their share of profits, reserves and goodwill to their account.

Correct answer: B. ₹72,000

The amount payable is calculated by adding the deceased partner’s capital and the goodwill credited to that partner: ₹65,000 + ₹7,000 = ₹72,000. Therefore, option B is correct. ₹70,000 is ₹2,000 short, while the other options exceed the correct total. In such questions, first check whether any additional adjustments, such as profit share or loan, are given.

Correct answer: A. Executor’s Loan Account

The amount due to a deceased partner may include the balance of the capital account, current account and profit up to the date of death. If it is not paid immediately, the amount is transferred to the deceased partner’s executor’s loan account. It represents a liability of the firm, not income, stock or an expense. Exam tip: when an amount is payable but payment is deferred, look for the executor’s loan account.

Correct answer: C. ₹100000

Net amount due = total amount due − drawings = ₹115000 − ₹15000 = ₹100000. Therefore, option C is correct. ₹105000 may result from mistakenly deducting ₹10000. In an exam, remember that drawings reduce the amount payable to the partner or the deceased partner’s estate.

Correct answer: B. ₹40,000

The amount due to a deceased partner is calculated by adding the credit balance of the partner’s Capital Account and the partner’s share in the Reserve Fund. Here, ₹35,000 + ₹5,000 = ₹40,000, so option B is correct. ₹38,000 is ₹2,000 less, while ₹42,000 is ₹2,000 more than the correct total. Exam tip: add the items credited to the deceased partner’s account.

Correct answer: C. ₹80,000

Net amount = Total share − Loss share = ₹88,000 − ₹8,000 = ₹80,000. Therefore, option C is correct. Options B and D incorrectly deduct ₹10,000 and ₹6,000 respectively instead of the given loss share. In the exam, remember that the loss share is subtracted from the total amount.

Correct answer: A. उसके कानूनी उत्तराधिकारियों को देय राशि का उचित भुगतान सुनिश्चित करने के लिए

The deceased partner’s capital and current account, goodwill, revaluation effects, and share of profit up to the date of death must be adjusted properly. Correct calculation ensures a fair settlement of the amount payable to the partner’s legal representatives. Increasing tax, expenses, or reducing sales is not the purpose of this calculation. Exam tip: While determining the amount due, do not forget the deceased partner’s share of goodwill and profit up to the date of death.

Correct answer: B. ₹1,05,000

The amount due to the deceased partner equals the balance in the capital account plus the partner’s share of goodwill. Therefore, ₹90,000 + ₹15,000 = ₹1,05,000. Options such as ₹1,00,000 and ₹1,10,000 reflect common addition errors. Exam tip: when no profit, loss, or other adjustment is mentioned, add the stated capital and goodwill amounts directly.

Correct answer: A. Because the revaluation profit is considered to have accrued up to the date of death

The gain arising from revaluing assets and liabilities relates to the period during which the deceased partner was a member of the firm. Therefore, revaluation profit up to the date of death is shared among the old partners in their old profit-sharing ratio, including the deceased partner’s share. Option B is incorrect because being a creditor does not give a partner’s right to share profits. Exam tip: Profits or losses arising before reconstitution are generally shared in the old profit-sharing ratio.

Correct answer: B. ₹1,00,000

Remaining amount payable = Total amount payable − Amount already paid = ₹1,40,000 − ₹40,000 = ₹1,00,000. Therefore, option B is correct. An answer such as ₹1,20,000 results from not subtracting the paid amount correctly. In the examination, subtract the amount already paid from the total amount due to find the balance.

Correct answer: C. ₹1,60,000

The amount payable to a deceased partner equals the aggregate of all amounts due to him, including capital, share of goodwill, share of profit and other adjustments. Therefore, when the total of all due items is ₹1,60,000, the amount payable is ₹1,60,000. Exam tip: do not add or deduct any item again after the total has already been determined.

Correct answer: A. Amount due to the deceased partner

The legal representative is entitled to claim the amount due to the deceased partner from the firm. After necessary adjustments, this may include capital, goodwill, accumulated profits and the deceased partner’s share of profit up to the date of death. There is no automatic right to future profits. Exam tip: determine the amount due as at the date of death.

Correct answer: B. ₹60,000

The amount payable to the deceased partner, considering these two items, is calculated by adding the partner’s capital and the accumulated profit credited to the account: ₹52,000 + ₹8,000 = ₹60,000. Therefore, option B is correct. The other options result from an incorrect addition. Exam tip: Identify each credit adjustment separately and then add it to the partner’s capital.

Correct answer: A. Added to the amount payable

Interest on the deceased partner’s capital accrued up to the date of death is credited to the partner’s Capital Account. Therefore, it increases the total amount payable to the deceased partner. In contrast, interest on drawings is deducted from the amount due. Exam tip: add interest on capital and deduct interest on drawings.

Correct answer: C. ₹1,00,000

Drawings are deducted from the total amount due to determine the net amount payable: ₹1,02,000 − ₹2,000 = ₹1,00,000. Therefore, option C is correct. Option A incorrectly deducts ₹4,000 instead of ₹2,000. Exam tip: When calculating the amount payable to a deceased partner, subtract the partner’s drawings from the total amount due.

Correct answer: A. Partner’s share of goodwill

The deceased partner’s share of goodwill is credited to the deceased partner’s account, thereby increasing the amount payable. Drawings, accumulated losses and revaluation losses reduce the amount due. Exam tip: items credited to the deceased partner’s account generally increase the amount payable, while debit items reduce it.

Correct answer: C. ₹75,000

Amount payable to the deceased partner = capital + share of undistributed profit = ₹68,000 + ₹7,000 = ₹75,000. Therefore, option C is correct. ₹73,000 results from an incorrect addition. In such questions, add all items that are payable to the deceased partner.

Correct answer: A. Credited to the capital account

Salary due to the deceased partner up to the date of death is an amount earned by the partner. Therefore, it is credited to the partner’s capital account, increasing the total amount payable to the partner’s estate. Deducting it is incorrect because the salary is receivable by the partner, not payable by the partner. Exam tip: Salary, commission and share of profit due to a deceased partner are credited to the partner’s capital account.

Correct answer: C. ₹90000

A revaluation loss is deducted from the amount due. Therefore, net amount due = ₹92000 − ₹2000 = ₹90000. ₹88000 is incorrect because it subtracts ₹4000. Exam tip: deduct a revaluation loss, but add a revaluation profit.

Correct answer: A. Because the reserve fund represents accumulated profits, and the deceased partner is entitled to his share in the old profit-sharing ratio

A reserve fund is created from undistributed profits of earlier years. Therefore, at the time of a partner’s death, the partner is entitled to his share of the reserve in the old profit-sharing ratio, and this amount is credited to his capital or current account. It is not a bank loan and is not distributed only among the new partners. Exam tip: On retirement or death, distribute a general reserve in the old profit-sharing ratio.

Correct answer: C. ₹90,000

The amount payable to the deceased partner is calculated as capital plus the partner’s share of goodwill: ₹82,000 + ₹8,000 = ₹90,000. Therefore, option C is correct. In the exam, add other adjustments such as profit share or interest only when they are specifically given.

Correct answer: A. Fair settlement

The amount due to a deceased partner may include the partner’s capital, share of accumulated profits or losses, goodwill, and profit or loss up to the date of death. Paying this amount represents a fair settlement of the partner’s rights. Option B is incorrect because appropriation of profit refers to distributing profit among partners, not to settling the deceased partner’s claim. Exam tip: If the amount is not paid immediately, it is generally transferred to the deceased partner’s executor’s loan account.

Correct answer: C. ₹100000

Balance payable = Total amount due − Amount paid = ₹118000 − ₹18000 = ₹100000. Therefore, option C is correct. Option B results from an incorrect subtraction. In the exam, subtract the amount already paid from the total amount due to find the remaining balance.