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While determining the amount due to a deceased partner, in which amount is the balance of the partner’s Capital Account included?

Answer and explanation

Correct answer: Amount due to the deceased partner

The balance of the deceased partner’s Capital Account is included in the amount due to that partner. The final claim may also include the Current Account balance, share of goodwill, profit up to the date of death, and other relevant adjustments. Sales, Purchases and Expenses Accounts do not form part of the deceased partner’s personal claim. Exam tip: the final amount due is credited to the deceased partner’s account.

Related tags

Partnership AccountsDeceased PartnerCapital AccountRetirement And DeathAmount DueDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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