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On the death of a partner, ₹85,000 is standing to his capital account and ₹15,000 is due as his share of goodwill. Assuming there are no other adjustments, what total amount is payable to the deceased partner?

Answer and explanation

Correct answer: ₹1,00,000

The total amount payable to the deceased partner is calculated as capital plus the share of goodwill: ₹85,000 + ₹15,000 = ₹1,00,000. Therefore, option C is correct. ₹90,000 results from an incorrect addition of the two amounts. Exam tip: when no other adjustments are given, add the deceased partner’s capital balance and goodwill share.

Related tags

Deceased Partner ShareGoodwill AdjustmentCapital AccountPartnership ReconstitutionRetirement Or DeathDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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