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Which account is opened if payment of the deceased partner's dues is deferred?

Answer and explanation

Correct answer: Executor’s Loan Account

When the amount due to a deceased partner is not paid immediately, it is transferred to the Executor’s Loan Account. This account represents the firm’s liability to the deceased partner’s executor, and the amount is paid later through this account. Stock, Sales and Purchase Accounts are unrelated to this liability. Exam tip: Remember that deferred payment of a deceased partner’s dues is recorded in the Executor’s Loan Account.

Related tags

AccountancyPartnershipReconstitutionDeceased PartnerExecutor Loan AccountRetirement Or DeathDeceased Partner’s ShareDeceased Partner S Share

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