How is the deceased partner’s share of revaluation profit treated in the accounts?

Correct answer: Credited to the deceased partner’s capital account and added to the amount due

Revaluation profit is credited to the capital or current accounts of all the old partners in their old profit-sharing ratio. Therefore, the deceased partner’s share is credited to that partner’s account and included in the amount payable on the date of death. Option C is incorrect because the deceased partner is entitled to the share of profit up to the date of death under the old partnership arrangement. Exam tip: Add the deceased partner’s share of revaluation profit while calculating the amount due to the partner’s estate.