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In a partnership firm, a deceased partner's capital is ₹50,000. While determining the amount due to the deceased partner's legal representatives, will this capital be included in his share?

Answer and explanation

Correct answer: Yes, the full ₹50,000

The positive balance of the deceased partner’s Capital Account is included in the amount payable to the legal representatives. Therefore, the full ₹50,000 will be included, although the final amount due may also include or adjust items such as profit, goodwill, reserves, drawings, or liabilities. Exam tip: the capital balance is a major component of the claim, not necessarily the entire final amount payable.

Related tags

Deceased Partner SharePartnership ReconstitutionCapital AccountAmount DueDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A PartnerAccountancy

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