Deceased Partner’s Share

The deceased partner’s total claim = Capital + Share of accumulated profits = ₹97000 + ₹3000 = ₹100000. Therefore, option C is correct. An amount such as ₹99000 results from an addition error. In an examination, include all claim-related adjustments given in the question; here, only these two items are provided.

Interest on capital accrued up to the date of death is credited to the deceased partner’s account because it represents an amount earned up to the date on which the partnership interest ends. In contrast, interest on drawings is charged to the partner and therefore deducted. Profit after death and the following year’s sales cannot be included in the deceased partner’s share. Exam tip: Add items accrued up to the date of death, such as profit, salary, commission and interest on capital; deduct interest on drawings.

Net claim = Gross claim − Accumulated loss − Drawings = ₹166000 − ₹6000 − ₹10000 = ₹150000. Both accumulated loss and drawings reduce the deceased partner’s Capital Account and therefore reduce the amount payable. In the examination, deduct all items debited to the partner’s Capital Account while calculating the net claim.

The capital and the deceased partner’s share of goodwill are added: ₹84,000 + ₹16,000 = ₹1,00,000. Therefore, option C is correct. Options B and D reflect an arithmetic shortfall and excess of ₹2,000, respectively. Exam tip: In settlement questions, identify capital, goodwill and other adjustments separately before calculating the total amount due.

On a partner’s death, accumulated profits, such as general reserve and the credit balance of the Profit and Loss Account, are distributed among the partners in their old profit-sharing ratio. The deceased partner’s share is credited to the deceased partner’s Capital or Current Account and therefore increases the amount payable to the estate. In contrast, accumulated losses are deducted. Exam tip: Add accumulated profits, deduct accumulated losses, and make the adjustment in the old profit-sharing ratio.

The deceased partner’s claim is calculated by adding the balance standing to the credit of the Capital Account and his share of the revaluation profit. Therefore, total claim = ₹93,000 + ₹7,000 = ₹1,00,000. ₹98,000 is incorrect because the revaluation profit is added, not deducted. Exam tip: a revaluation profit is credited to the partner’s Capital Account; a revaluation loss would reduce the claim.

After determining the amount due to the deceased partner, if it is not paid immediately, the amount is transferred to the deceased partner's executor's loan account. Therefore, option B is correct. The Cash Account is affected only when an actual payment is made; the unpaid amount is not transferred to it. Exam tip: an amount due but unpaid on a partner's death is credited to the Executor's Loan Account.

Drawings are deducted from the deceased partner’s total claim to determine the net amount payable. Thus, net claim = ₹1,32,000 − ₹12,000 = ₹1,20,000. Therefore, option C is correct. In the examination, remember that drawings reduce the amount due to the partner.

A deceased partner is entitled to the profit earned during the current accounting year up to the date of death, according to the agreed profit-sharing ratio. Therefore, the estimated share of that profit is credited to the deceased partner’s Capital or Current Account. It is not a claim on future profits, a bonus, or a loan. Exam tip: Profit is calculated only for the period from the beginning of the accounting year up to the date of death.

The claim is calculated by adding the given components: capital ₹72,000 + share in the reserve fund ₹28,000 = ₹1,00,000. Therefore, option C is correct. An amount such as ₹98,000 results from an incorrect addition. Exam tip: For a deceased partner’s claim, identify and add each applicable item separately, such as capital, reserve share, goodwill, and the share of profit or loss.

Net claim of the deceased partner = Capital + goodwill credited − drawings = ₹108000 + ₹12000 − ₹20000 = ₹100000. Therefore, option C is correct. Capital and the goodwill amount increase the amount payable, whereas drawings are deducted from the partner’s claim. Exam tip: add all credit items first and then subtract drawings and other debit adjustments.

A revaluation loss is deducted from the deceased partner’s claim. Therefore, net claim = ₹156000 − ₹6000 = ₹150000. The ₹148000 option incorrectly deducts ₹8000. Exam tip: add a revaluation profit to the claim but deduct a revaluation loss.

The amount due for the deceased partner’s capital, current account, goodwill and share of profit, as applicable, is paid to the deceased partner’s legal representative. It is generally transferred to the executor’s account before settlement. A new partner merely joins the reconstituted firm and does not automatically become entitled to the deceased partner’s claim. Exam tip: Record the amount due after death in the account of the deceased partner’s legal representative or executor.

The deceased partner’s total claim includes his capital and his share of accumulated profits. Therefore, total claim = ₹64000 + ₹36000 = ₹100000. The other amounts result from an incorrect addition. In an examination, remember to include interest, profit or loss, drawings, and other adjustments if they are specifically given.

A reserve fund represents profits earned in earlier years and retained in the business; therefore, it is treated as accumulated profit. On a partner’s death, it is transferred to the partners’ capital or current accounts in the old profit-sharing ratio, with the deceased partner’s share credited to his or her account. It is not an outside liability or a loan. Exam tip: Distribute reserves and other accumulated profits in the old ratio unless the question specifies a different treatment.

The amount payable to the deceased partner’s legal representative includes his capital, share of goodwill, and share of profit up to the date of death. Therefore, total claim = ₹76,000 + ₹14,000 + ₹10,000 = ₹1,00,000. Amounts such as ₹98,000 or ₹1,02,000 result from an incorrect addition. Exam tip: Add all relevant credit items in the deceased partner’s account and deduct liabilities or drawings if they are given.

Accumulated loss reduces the amount payable to the deceased partner’s executor. Therefore, revised claim = ₹1,27,000 − ₹7,000 = ₹1,20,000. Hence, option B is correct. Exam tip: subtract accumulated losses from the claim, while accumulated profits are added to it.

Net claim = Capital balance + the deceased partner’s share of goodwill − Drawings = ₹91,000 + ₹10,000 − ₹1,000 = ₹1,00,000. Therefore, option C is correct. Option B makes an additional deduction of ₹1,000. Exam tip: Add all credit items due to the deceased partner and deduct debit items such as drawings.

Net claim of the deceased partner = Total claim − Share of loss = ₹1,70,000 − ₹20,000 = ₹1,50,000. Therefore, option C is correct. Adding the loss share would be incorrect because it is deducted from the amount due to the deceased partner. Exam tip: any loss or other debit amount charged to the partner’s account reduces the final claim.

The amount due to a deceased partner includes the balance of the Capital Account, the partner’s share in the Reserve Fund, and the share of profit earned up to the date of death. Therefore, total claim = ₹75,000 + ₹15,000 + ₹10,000 = ₹1,00,000. ₹95,000 omits the partner’s share of the Reserve Fund, which must also be credited to the partner’s account. Exam tip: While calculating a deceased partner’s claim, add capital, reserves, profit and all other applicable adjustments separately.

The deceased partner’s claim includes the partner’s capital plus the share of accumulated profits due to the partner. Therefore, total claim = ₹88,000 + ₹12,000 = ₹1,00,000, so option C is correct. Option B understates the addition by ₹2,000, while option D overstates it by ₹2,000. Exam tip: Add all amounts due up to the date of death to capital and deduct liabilities or losses if they are given.

The deceased partner’s total claim equals capital plus the partner’s share of goodwill: ₹95,000 + ₹5,000 = ₹1,00,000. Therefore, option C is correct. An answer of ₹99,000 reflects an addition error of ₹1,000. In an examination, add capital, goodwill and any other applicable adjustments separately before determining the final claim.

After making adjustments for the deceased partner’s capital and current accounts, goodwill, revaluation, and profit up to the date of death, the amount payable is transferred to the account of the partner’s legal representative or executor and paid to them. An accountant only records the transaction, so option A is incorrect. Exam tip: remember that the deceased partner’s amount due is generally credited to the executor’s account.

The net claim is calculated by deducting the deceased partner’s drawings from the total claim: ₹1,45,000 − ₹15,000 = ₹1,30,000. Therefore, option C is correct. Exam tip: drawings reduce the amount payable to the deceased partner; they are not added to the claim.

Goodwill represents the value of the firm’s reputation, customer base and future earning capacity. The deceased partner is therefore compensated for his share of goodwill because he contributed to building it during the partnership. Normally, this amount is credited to the deceased partner’s capital or current account and debited to the accounts of the gaining partners. Option B relates only to personal debts and has no connection with goodwill. Exam tip: In reconstitution, goodwill is adjusted in favour of a partner whose share is sacrificed or who is leaving the firm.