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A deceased partner’s capital is ₹90,000 and his share of the reserve is ₹12,000. Based on these two items, what amount will be added to the deceased partner’s account?

Answer and explanation

Correct answer: ₹1,02,000

The deceased partner’s capital and his share of the reserve are added to his account. Therefore, the amount is ₹90,000 + ₹12,000 = ₹1,02,000. ₹98,000 results from subtraction, while ₹1,10,000 and ₹92,000 reflect incorrect addition. Exam tip: A partner’s share of the reserve is generally credited to the partner’s Capital Account.

Related tags

AccountancyPartnership AccountsRetirement Of PartnerDeceased PartnerReserve FundCapital AccountDeceased Partner’s ShareDeceased Partner S Share

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