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What is the primary objective of calculating a deceased partner’s share?

Answer and explanation

Correct answer: Proper determination and settlement of the amount due to the deceased partner’s legal representative

After adjusting the deceased partner’s capital and current accounts, goodwill, revaluation, and profit or loss up to the date of death, the amount payable to the legal representative is determined. Hence, the main objective is a proper and accurate settlement. Tax saving and increasing sales are not the direct purposes of this calculation. Exam tip: Include all adjustments applicable up to the date of death while determining the amount due.

Related tags

AccountancyPartnershipReconstitutionDeceased Partner ShareLegal RepresentativeSettlementDeceased Partner’s ShareDeceased Partner S Share

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