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In partnership accounting, the deceased partner’s share is determined and settled because of which event?

Answer and explanation

Correct answer: Death of the partner

The deceased partner’s share is determined because the partner has died. The settlement may include the partner’s share of profit or loss up to the date of death, goodwill, and the balance of the capital account, payable to the legal representative. Retirement is also a reconstitution event, but it is different from death. Exam tip: whenever the term “deceased partner” appears, link it to the partner’s death.

Related tags

Partnership AccountingDeceased PartnerPartner DeathReconstitutionGoodwillCapital AccountDeceased Partner’s ShareDeceased Partner S Share

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