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Why is a deceased partner given a share of the revaluation profit?

Answer and explanation

Correct answer: He was a partner up to the date of death

Revaluation profit is considered to arise up to the date on which the partner dies. Therefore, the deceased partner is credited with his share of this profit according to the profit-sharing ratio applicable up to the date of death. A new partner is entitled only to profits arising after admission. Exam tip: Revaluation profit up to the date of death or retirement belongs to the old partners.

Related tags

AccountancyPartnership AccountsRevaluation ProfitDeceased PartnerRetirement Or DeathDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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