In calculating a deceased partner’s share, which account is considered the primary base?

Correct answer: Capital Account

The relevant accounting principle is settlement of the deceased partner’s amount due. The capital account records the partner’s contributed capital and the accumulated adjustments affecting that balance, such as reserves, undistributed profits or losses, goodwill, and profit earned up to the date of death. Thus, it provides the primary base for determining the amount payable to the deceased partner or to the partner’s representative. The bank account only shows cash and bank transactions; it does not measure the partner’s claim. Purchases and sales accounts record trading activity and are not personal settlement accounts. Therefore, option A is the best answer, although a complete calculation may require several additional adjustments.