Deceased Partner’s Share

The net claim is calculated as: capital balance + the partner’s share of goodwill − the partner’s share of accumulated loss. Thus, ₹78,000 + ₹12,000 − ₹10,000 = ₹80,000. Goodwill is added to the deceased partner’s claim, whereas accumulated loss is deducted. In the exam, carefully check the sign of each adjustment.

The governing accounting principle is that profit earned up to a partner’s death belongs to that partner and must be credited to the amount ultimately payable to the partner’s estate. When the partnership deed does not provide a special arrangement, the estimated share of profit up to the date of death is credited to the deceased partner’s capital account, or to a separate deceased partner’s account if the firm maintains one. Among the given alternatives, option A is therefore correct. Cash and bank accounts record settlement or payment, not the allocation of profit. Sales account records revenue and cannot represent the partner’s personal entitlement.

The governing concept is estimation of a deceased partner’s share of profit for the period between the last accounts and the date of death. If the partnership deed is silent about the method, a reasonable and commonly accepted basis is the average of past profits, often adjusted for the relevant time period. This approach uses the firm’s established earning pattern rather than an unrelated balance or a single revenue item. Hence option A is the most appropriate answer. Estimated cash is not the same as profit because cash includes receipts and payments from several periods. Sales alone ignore expenses, and purchases alone do not measure earnings. The exact computation may require a time fraction, but the stated basis remains average past profit.

The deceased partner’s total claim includes the amount of capital and the partner’s share of goodwill. Therefore, total claim = ₹85,000 + ₹15,000 = ₹1,00,000. ₹95,000 results from an incorrect or incomplete calculation. In the examination, add all amounts due and include other adjustments only when they are specifically given.

General reserve and other accumulated profits are distributed among all partners in the old profit-sharing ratio. Therefore, the deceased partner’s share is credited to the deceased partner’s capital account, increasing the amount payable to the legal representative. In contrast, accumulated losses or a debit balance are deducted from the partner’s account. Exam tip: remember the entry as ‘Debit reserve, credit partners’ capital accounts.’

The amount payable to the deceased partner’s legal representative includes the credit balance of the capital account and the partner’s share of the revaluation profit. Therefore, total claim = ₹92,000 + ₹8,000 = ₹1,00,000. Since no other adjustments are given, only these two components are included. Exam tip: Add the deceased partner’s share of revaluation profit, not the firm’s entire revaluation profit.

When the amount due to a deceased partner is not paid immediately, it is credited to the deceased partner’s executor’s loan account. This records the amount as a liability payable to the executor, who can be paid later. The capital account is not the correct answer because the deceased partner’s claim has already been determined and is now treated as an amount due to the executor. Exam tip: remember that non-immediate settlement of a deceased partner’s claim leads to an Executor’s Loan Account.

Drawings are deducted from the total amount due to determine the net claim. Therefore, ₹1,18,000 − ₹8,000 = ₹1,10,000. Choosing ₹1,08,000 would result from incorrectly subtracting ₹10,000. Exam tip: drawings reduce the amount payable to the partner or the deceased partner’s estate.

The capital and the deceased partner’s share of the reserve fund are added: ₹70,000 + ₹12,000 = ₹82,000. Therefore, the correct claim based on the given items is ₹82,000. Choosing ₹80,000 reflects an addition error of ₹2,000. Exam tip: Identify and add each item included in the deceased partner’s claim, such as capital, reserves, profit and goodwill, only when it is provided.

Drawings are amounts already withdrawn by the partner, so they are debited to the deceased partner’s capital or current account and reduce the amount payable. In contrast, the deceased partner’s share of goodwill, reserve fund and accumulated profits is generally credited to the account. Exam tip: Add credit items and deduct debit items such as drawings and interest on drawings when calculating the final amount payable.

Net claim of the deceased partner = Capital + Share of goodwill − Drawings. Therefore, ₹105000 + ₹15000 − ₹5000 = ₹115000. Goodwill is credited to the partner’s account, whereas drawings are deducted from it. In the exam, remember to add credit items and subtract drawings while calculating the final claim.

Net claim = Total claim − Revaluation loss = ₹1,54,000 − ₹4,000 = ₹1,50,000. Therefore, option C is correct. Option D does not deduct the revaluation loss correctly. In such questions, remember to subtract the deceased partner’s share of revaluation loss from the claim amount when the loss is to be adjusted.

After adjusting the deceased partner’s capital, current account, goodwill and other relevant items, the amount due is paid to the deceased partner’s legal representative or executor. A new partner merely joins the reconstituted firm and does not receive the deceased partner’s claim. Exam tip: record the payable amount in the deceased partner’s executor or legal representative account.

The deceased partner’s claim includes his capital and the accumulated profits credited to his account. Therefore, total claim = ₹60,000 + ₹14,000 = ₹74,000. The other amounts do not result from adding the two given figures. Exam tip: accumulated profits are added to the deceased partner’s claim because they belong to the partners in their profit-sharing ratio.

The balance payable is calculated by subtracting the amount already paid from the total claim: ₹1,35,000 − ₹35,000 = ₹1,00,000. Therefore, option C is correct. The amount already paid must be deducted, not added, to the total claim. Exam tip: balance due = total claim − amount already paid.

A reserve fund is an amount retained out of profits of earlier years, so it represents accumulated profit. The deceased partner’s share is credited to his capital or current account according to the profit-sharing ratio, thereby increasing the amount payable to him. It is not treated as an outside liability of the firm. Exam tip: Distribute an existing reserve among partners in their old profit-sharing ratio.

The deceased partner’s total claim is the sum of all amounts credited to the partner’s account: capital ₹81,000 + share of goodwill ₹9,000 + share of profit up to death ₹10,000 = ₹1,00,000. Therefore, option C is correct. Exam tip: add the capital, goodwill adjustment and profit due to the deceased partner to determine the total claim.

The accumulated loss is deducted from the deceased partner’s claim. Therefore, revised claim = ₹1,26,000 − ₹6,000 = ₹1,20,000. Hence, option B is correct. Exam tip: when a loss is adjusted against the claim, the amount payable decreases rather than increases.

Net claim = Capital Account balance + share of goodwill − drawings. Therefore, ₹98,000 + ₹10,000 − ₹8,000 = ₹1,00,000. Goodwill is credited to the deceased partner’s account, whereas drawings are deducted from it. Option C incorrectly adds drawings instead of deducting them. Exam tip: Add credit items and subtract debit items while calculating the amount payable to the executor.

The loss share is deducted from the total claim because it reduces the amount payable to the deceased partner’s account. Therefore, net claim = ₹168000 − ₹18000 = ₹150000. An amount such as ₹155000 results from an incorrect subtraction. In the exam, remember that adjustment of a loss reduces, rather than increases, the claim.

On death, the deceased partner’s rights and obligations as a partner cease. Therefore, the deceased partner is entitled only to the profit earned up to the date of death; profits earned afterward belong to the continuing or reconstituted firm. Option B is incorrect because the deceased partner’s capital account may still have a balance that must be settled. Exam tip: while calculating the deceased partner’s profit share, restrict the period to the date of death.

The amount payable to the deceased partner’s executor includes the partner’s capital, share in the reserve fund, and share of profit earned up to the date of death. Therefore, claim = ₹77,000 + ₹13,000 + ₹10,000 = ₹1,00,000. ₹98,000 results from adding only capital and reserve fund, so it omits the share of profit. Exam tip: While calculating a deceased partner’s claim, include all credited items and adjust for drawings, losses, or other amounts when given.

The total claim is calculated by adding the deceased partner’s capital and their share of accumulated profits: ₹89,000 + ₹11,000 = ₹1,00,000. The ₹98,000 option results from an incorrect addition. Exam tip: Identify capital, accumulated profits and other payable items separately before adding them to determine the final claim.

Accumulated loss belongs to the old partners and is distributed among them in their old profit-sharing ratio. Therefore, the deceased partner’s share is debited to his Capital Account, reducing the amount payable to his estate. Option A is incorrect because accumulated profits are credited, whereas accumulated losses are debited. Exam tip: accumulated profits are credited; accumulated losses are debited.

The deceased partner’s total claim is calculated as the amount in the capital account plus the partner’s share of goodwill. Thus, ₹94,000 + ₹16,000 = ₹1,10,000. Amounts such as ₹1,08,000 or ₹1,12,000 result from an arithmetic error. In an examination, first check whether any other items, such as a share of profit or outstanding salary, also need to be added.