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If the amount due to a deceased partner is not paid immediately, in which account is it recorded?

Answer and explanation

Correct answer: Executor’s Loan Account

When the amount due to a deceased partner is not paid immediately, it is transferred to the Executor’s Loan Account. This account records the amount as a liability payable to the deceased partner’s executor. Purchase, Sales and Building Accounts are unrelated to this adjustment. Exam tip: Remember that an unpaid amount due on a partner’s death goes to the Executor’s Loan Account.

Related tags

Partnership AccountsDeceased PartnerExecutor Loan AccountRetirement And DeathReconstitution Of PartnershipDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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