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To whom is the deceased partner’s share of profit earned up to the date of death paid?

Answer and explanation

Correct answer: The deceased partner’s legal representative

The deceased partner’s share of profit earned up to the date of death is credited to the account of the deceased partner’s legal representative or executor because it is an amount due to the deceased partner. It is not paid directly to the surviving or incoming partners. Exam tip: The profit share up to the date of death is transferred from the deceased partner’s capital or current account to the executor’s account.

Related tags

Partner RetirementPartner DeathDeceased Partner ShareLegal RepresentativePartnership AccountingDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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