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In whose capital account is the deceased partner’s share of profit up to the date of death credited?

Answer and explanation

Correct answer: Deceased partner’s capital account

The deceased partner earns a right to the share of profit up to the date of death, so this amount is credited to the deceased partner’s capital account. It is subsequently payable to the deceased partner’s legal representative or executor. It is not credited to the surviving partners’ accounts. Exam tip: Always calculate profit up to the date of death separately from profit earned after that date.

Related tags

Deceased Partner SharePartnership ReconstitutionRetirement Or DeathProfit Till DeathCapital AccountDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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