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In the reconstitution of a partnership firm, after which event is the deceased partner’s share determined?

Answer and explanation

Correct answer: Death of a partner

The deceased partner’s share is determined after the partner’s death. Adjustments relating to profit or loss up to the date of death, goodwill and revaluation are considered in settling the amount due. Admission and merger are different events, and a partner’s death does not necessarily mean dissolution of the firm. Exam tip: Associate the term ‘deceased partner’ directly with the event ‘death of a partner.’

Related tags

Partnership ReconstitutionDeceased Partner ShareDeath Of PartnerRetirement Or Death Of PartnerAccountancy Class 12Deceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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