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While determining the amount due to a deceased partner, what is the effect of the partner’s share of revaluation loss?

Answer and explanation

Correct answer: It will be deducted from the amount due

A revaluation loss is a loss arising from the revaluation of the firm’s assets and liabilities. The deceased partner must bear the partner’s share of this loss up to the date of death. Therefore, the share is debited to the partner’s capital account and deducted from the amount payable. Exam tip: a revaluation profit is added, whereas a revaluation loss is deducted.

Related tags

Partnership AccountsDeceased PartnerRevaluation LossRetirement Or Death Of PartnerCapital AccountDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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