On a partner’s death, what is the amount called that is obtained by adding capital, goodwill, accumulated profits and the share of profit up to the date of death, and deducting drawings and losses due from the partner?

Correct answer: Total amount due to the deceased partner

The amount due to a deceased partner is determined from the balance of the partner’s capital account along with goodwill, accumulated profits, the share of profit up to the date of death and other adjustments. After deducting drawings, accumulated losses and other debit amounts recoverable from the partner, the resulting net figure is called the total amount due to the deceased partner. Sales, purchases and cash balance do not represent this claim. Exam tip: add credit items and deduct drawings and other debit items while calculating the final amount due.