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

Answer and explanation

Correct answer: Deceased partner’s capital account

The deceased partner’s share of profit earned up to the date of death but remaining undistributed is credited to that partner’s capital account. Under the fixed-capital method, it may instead be credited to the partner’s current account. It is not directly credited to the remaining partners’ capital accounts, the Realisation Account, or the Goodwill Account. Exam tip: Adjustments due to a deceased partner are generally credited to the deceased partner’s capital or current account.

Related tags

Partnership AccountsDeceased PartnerUndistributed ProfitCapital AccountRetirement And DeathDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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