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Why is the deceased partner’s share calculated?

Answer and explanation

Correct answer: To determine the amount payable to the deceased partner or the legal heir

The deceased partner’s share is calculated to determine the amount payable to the deceased partner’s legal heir or executor. This amount may include the partner’s capital, reserves, goodwill and share of profit up to the date of death, after necessary adjustments. Therefore, option A is correct; the other options are not purposes of this calculation. Exam tip: Remember to include the deceased partner’s share of profit up to the date of death.

Related tags

Partnership AccountsDeceased PartnerRetirement Or DeathAmount DueLegal HeirDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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