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To whom is the deceased partner’s share of profit earned up to the date of death payable?

Answer and explanation

Correct answer: Deceased partner’s executor or legal representative

The deceased partner’s proportionate share of profit earned up to the date of death is payable to the deceased partner’s executor or legal representative. In the books, the amount may first be adjusted through the deceased partner’s capital account and then transferred to the executor’s account. Surviving or incoming partners are not entitled to this share. Exam tip: Profit up to the date of death is calculated through the Profit and Loss Adjustment Account.

Related tags

Partnership AccountingDeceased PartnerProfit Until DeathExecutorPartner RetirementDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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