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To whom is the deceased partner’s share usually paid?

Answer and explanation

Correct answer: The legal representative

When a partner dies, the amount due to that partner is calculated by considering the capital balance, share of goodwill, accumulated profits or losses, and profit earned up to the date of death, as applicable under the partnership agreement. The resulting amount is transferred to the deceased partner’s Executor’s Account or Legal Representative’s Account. It is therefore payable to the person legally authorised to represent the deceased partner’s estate, normally the legal representative. The remaining partners may continue the business, but they do not become the payee merely because they continue it. A bank and an accountant may assist with payment or records, but neither is entitled to the deceased partner’s share.

Related tags

Partnership-AccountsDeceased-PartnerLegal-RepresentativeDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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