Deceased Partner’s Share

After adjusting the deceased partner’s capital, accumulated profits or losses, goodwill, and profit up to the date of death, the amount due is payable to the deceased partner’s legal representative or executor. The firm manager, bank, and creditors are not the normal recipients of this amount. Exam tip: The balance due to a deceased partner is transferred to the executor’s or legal representative’s account.

The net claim is calculated by deducting the deceased partner’s drawings from the total claim: ₹1,42,000 − ₹12,000 = ₹1,30,000. Therefore, option C is correct. Drawings must be deducted because they represent amounts already withdrawn by the partner; adding them would overstate the amount payable. In the exam, carefully identify whether an item is to be deducted or added while calculating the final claim.

Goodwill reflects the firm’s reputation, customer relationships and capacity to earn higher profits in the future. Since the continuing partners retain the benefit of this goodwill after the partner’s death, the deceased partner is credited with his share as compensation for his right to future profits. It is not a share in book assets, a loan or a current operating expense. Exam tip: In admission, retirement or death adjustments, link goodwill with the partner’s right to future profit-earning benefits.

The deceased partner’s total claim is calculated by adding the balance in the Capital Account to his shares of Revaluation Profit and the Reserve Fund: ₹73000 + ₹7000 + ₹20000 = ₹100000. Therefore, option C is correct. Option B is ₹2000 short because it does not include the full amount. In an exam, include only the deceased partner’s share of each adjustment, not the firm’s total amount.

A deceased partner is entitled only to the profit earned up to the date of death. Sales made after that date and the profit arising from them relate to a period in which the partner was no longer associated with the firm, so they are excluded from the estimation of the deceased partner’s share. The other options are incorrect because sales may be cash or credit, and sales are neither expenses nor necessarily losses. Exam tip: Treat the date of death as the cut-off date for calculating the deceased partner’s profit.

A revaluation loss is deducted from the deceased partner’s claim. Therefore, net claim = ₹1,21,000 − ₹11,000 = ₹1,10,000. Hence, option C is correct. Exam tip: deduct losses from the partner’s claim and add gains or other amounts due to the partner.

When the partnership deed provides for interest on capital, the interest accrued up to the date of death becomes part of the amount payable to the deceased partner and is credited to the partner’s capital or current account. It is calculated proportionately for the period from the beginning of the accounting period to the date of death. Therefore, it is not deducted or postponed until the year-end. Exam tip: use the actual period up to the date of death, not the complete accounting year.

The deceased partner’s total claim is calculated as capital plus the goodwill attributable to that partner: ₹1,01,000 + ₹9,000 = ₹1,10,000. Therefore, option C is correct. Option B understates the sum by ₹3,000, while option D overstates it by ₹2,000. Exam tip: In retirement or death adjustments, add capital, goodwill, and any other amounts due separately before determining the final claim.

Revaluation loss arising up to the date of death is shared by the old partners 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 D is incorrect because the loss is not borne only by the continuing partners; it is shared by all partners up to the date of death. Exam tip: While calculating the deceased partner’s final claim, add his share of revaluation profit and deduct his share of revaluation loss.

The remaining payable amount is calculated as total claim minus the amount already paid: ₹180000 − ₹70000 = ₹110000. Therefore, option C is correct. ₹105000 results from an incorrect subtraction. In such questions, subtract the payment already made from the deceased partner’s total claim.

A reserve fund is an undistributed portion of profits accumulated from previous years. Every partner has a right to these accumulated profits according to the profit-sharing ratio prevailing before reconstitution. Therefore, on the partner’s death, the deceased partner’s share of the reserve fund is credited to the deceased partner’s Capital or Current Account and becomes part of the amount payable to the executor. Exam tip: At the time of reconstitution, distribute a reserve fund among all old partners in their old profit-sharing ratio.

The amount payable to a deceased partner is calculated by adding capital, the partner’s share of profit up to the date of death, and the partner’s share of goodwill. Thus, ₹86,000 + ₹4,000 + ₹10,000 = ₹1,00,000. Therefore, option C is correct. Exam tip: If drawings, liabilities, or other adjustments are given, include them before determining the final claim.

The deceased partner’s share of accumulated loss is deducted from the total claim. Therefore, revised claim = ₹149000 − ₹9000 = ₹140000. An option such as ₹142000 does not reflect the correct deduction. Exam tip: accumulated loss reduces the amount payable to the deceased partner.

A partner’s right to share profits continues only for the period during which the person remains a partner. The partnership relationship ends on the date of death, so the deceased partner or the estate has no claim over profits earned after that date. However, the estimated profit or loss from the last accounting date up to the date of death is adjusted in the deceased partner’s account. Option B is incorrect because profit can also be estimated for an interim period. Exam tip: Calculate the deceased partner’s share only up to the date of death, not for the period following it.

Based on the two specified items, the deceased partner’s claim is the sum of the capital account balance and the partner’s share of the reserve fund: ₹79,000 + ₹21,000 = ₹1,00,000. Hence, option C is correct. Option B is ₹2,000 less and option D is ₹2,000 more than the correct amount. Exam tip: Include goodwill, profit, or other adjustments only when they are mentioned in the question.

The amount due to a deceased partner may include the partner’s capital, share of accumulated profits, goodwill adjustments and other profit or loss adjustments. Until settlement, this amount represents an obligation of the firm and is therefore classified as a liability. It is generally transferred to the deceased partner’s executor’s account. It is not treated as the firm’s capital because, after the partner’s death, the amount becomes payable to the partner’s legal representative. Exam tip: the amount remains a liability until payment; on payment, the liability is discharged and cash or bank balance decreases.

Drawings represent an amount already withdrawn by the partner from the firm, so they must be deducted from the total claim. Net claim = ₹1,58,000 − ₹18,000 = ₹1,40,000. Therefore, ₹1,40,000 is payable to the deceased partner’s executor. Exam tip: drawings reduce the amount payable, whereas credit items such as capital, profit, or interest increase the claim.

Salary earned up to the date of death is an amount receivable by the deceased partner from the firm. It is therefore credited to the deceased partner’s Capital Account or Current Account, increasing the amount payable by the firm. Debiting it or crediting only half of it is incorrect. Exam tip: Salary, commission, the share of profit up to death and the share of goodwill due to the deceased partner are credited to the partner’s account, while drawings are debited.

The claim is calculated by adding the deceased partner’s capital balance and their share of goodwill: ₹1,12,000 + ₹8,000 = ₹1,20,000. Hence, option C is correct. Option B is ₹2,000 short, while option D is ₹2,000 more than the correct amount. Exam tip: Add items such as share of profit, accumulated profits, reserves, or interest only when they are specifically provided in the question.

Net claim = Gross claim − Revaluation loss − Drawings. Thus, ₹1,72,000 − ₹12,000 − ₹10,000 = ₹1,50,000, making option C correct. Option D deducts only the revaluation loss and ignores drawings, which also reduce the partner’s capital account. Exam tip: Subtract every item debited to the deceased partner’s account while calculating the amount payable.

The amount payable based on the specified items is calculated as capital plus the deceased partner’s share of goodwill. Thus, ₹83,000 + ₹17,000 = ₹1,00,000, making option C correct. Items such as the partner’s share of profit, revaluation profit or interest on capital are not included because they have not been provided. In the examination, identify all the items stated for settlement and add only those relevant items.

The outstanding amount is calculated as: total amount payable − amount already paid = ₹1,44,000 − ₹44,000 = ₹1,00,000. Hence, option C is correct. Adding ₹44,000 would be incorrect because that amount has already been paid. Exam tip: whenever a total claim and part payment are given, subtract the part payment from the total claim to find the balance payable.

Revaluation profit or loss arising up to the date of death is distributed in the old profit-sharing ratio because the original partnership agreement remains effective until that date. Hence, the deceased partner’s share is calculated using the profit-sharing ratio before death. The new ratio applies only to the period after reconstitution. Exam tip: For profits or losses up to retirement or death, generally use the old ratio.

The amount payable to the deceased partner’s legal representative includes the capital balance, the partner’s share of profit up to the date of death, and the partner’s share of the reserve fund. Therefore, total claim = ₹69,000 + ₹11,000 + ₹20,000 = ₹1,00,000, so option C is correct. Exam tip: Add profit and reserve adjustments to the capital balance; deduct liabilities or drawings if they are given.

After all adjustments relating to capital, current account, goodwill, revaluation and reserves, the net amount due to the deceased partner is transferred to the deceased partner’s Executor’s Account. If it is not paid immediately, the amount remains payable through this account; it is not ordinarily transferred to a loan account as in the case of a retiring partner. Exam tip: Remember ‘Executor’s Account’ for death and ‘Loan Account’ for retirement.