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Which of the following items is credited to the deceased partner’s account and increases the amount of his or her claim?

Answer and explanation

Correct answer: Deceased partner’s share of goodwill

The deceased partner’s share of goodwill is credited to his or her account, so it increases the amount payable to the partner’s estate. Drawings, accumulated loss and revaluation loss are debited and therefore reduce the claim. Exam tip: credit items such as goodwill and profit increase the claim, while debit items such as losses and drawings reduce it.

Related tags

Partnership AccountsDeceased PartnerGoodwillRetirement Or DeathRevaluationPartner ClaimDeceased Partner’s ShareDeceased Partner S Share

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