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What is the main objective of calculating a deceased partner’s share?

Answer and explanation

Correct answer: Proper determination of the amount due to the deceased partner or the legal representative

The purpose is to determine the correct amount payable to the deceased partner or the legal representative after considering items such as capital, reserves, goodwill, accumulated profits or losses, and the partner’s share of profit up to the date of death. The new profit-sharing ratio is determined separately during reconstitution. Exam tip: The amount due is generally credited to the deceased partner’s account and then paid or transferred to the executor’s account.

Related tags

Partnership AccountsDeceased PartnerRetirement Or DeathAmount DueReconstitutionDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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