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The amount of ₹1,20,000 payable as the deceased partner’s share is treated as whose liability?

Answer and explanation

Correct answer: Firm's

The amount due to a deceased partner, calculated from items such as the capital account, current account, share of profit and share of goodwill, is payable by the firm. Therefore, ₹1,20,000 is the firm’s liability and is generally transferred to the deceased partner’s executor’s account as payable. Exam tip: On a partner’s death, the final amount due to the partner is treated as a liability of the firm.

Related tags

Deceased Partner SharePartnership AccountsFirm LiabilityPartner Retirement And DeathAccountancy Class 12Deceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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