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To whom is the final amount due to a deceased partner paid?

Answer and explanation

Correct answer: Legal representative

The amount due to a deceased partner, including the balance of capital and adjustments for goodwill and profit or loss, is payable to the partner’s legal representative or executor. Therefore, ‘Legal representative’ is correct. The amount is not ordinarily payable to a customer, the government or a bank. Exam tip: After a partner’s death, the final amount standing to the partner’s account is transferred to the legal representative’s account.

Related tags

AccountancyPartnershipReconstitutionDeceased PartnerLegal RepresentativeDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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