Deceased Partner’s Share

Correct answer: B. Added

Commission earned up to the date of death is an income and entitlement of the deceased partner. Therefore, it is added to the claim payable to the partner’s executor, even if it is paid later. Deducting it is incorrect because it is an amount due to the partner. Exam tip: while calculating a deceased partner’s claim, add accrued profit, salary or commission and deduct items such as drawings.

Correct answer: C. ₹150000

Balance in the loan account = Total claim − Amount paid = ₹190000 − ₹40000 = ₹150000. Therefore, option C is correct. The other amounts result from an incorrect subtraction. In the exam, subtract the payment already made from the total amount due to find the outstanding loan balance.

Correct answer: C. Profit of future years

A deceased partner’s claim generally includes profit earned up to the date of death, the partner’s share of goodwill, and the partner’s share of reserves. Profit earned in future years is not normally credited because the partner is no longer associated with the firm after death. Exam tip: check whether each item relates to the partner’s rights up to the date of death.