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Until it is paid, what is the deceased partner’s amount due to the firm considered as?

Answer and explanation

Correct answer: Liability

The amount payable to the deceased partner’s legal representative, after considering the capital account, current account, goodwill and profit or loss adjustments, remains a liability of the firm until it is paid. It is not income, profit or an asset. Exam tip: an unpaid amount due to a deceased partner is generally transferred to the deceased partner’s executor’s account and shown as a liability.

Related tags

Partnership AccountsDeceased PartnerRetirement Or DeathPartner LiabilityExecutor AccountDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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