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When the amount due to a deceased partner’s executor is paid immediately, which of the following accounts is not required?

Answer and explanation

Correct answer: Executor’s Loan Account

The amount due is determined through the deceased partner’s capital account, and cash or bank is used for immediate settlement. An executor’s loan account is required only when the amount is not paid immediately and remains outstanding. Therefore, it is not necessary when payment is made at once. Exam tip: whenever the question mentions ‘immediate payment’, remember that no executor’s loan account is opened.

Related tags

AccountancyPartnershipReconstitutionDeceased Partner ShareExecutor Loan AccountDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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