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On the death of a partner, a total amount of ₹1,25,000 is due to him. His share of accumulated loss is ₹5,000. What will be the net claim of the deceased partner?

Answer and explanation

Correct answer: ₹1,20,000

Net claim of the deceased partner = Total amount due − His share of accumulated loss = ₹1,25,000 − ₹5,000 = ₹1,20,000. The partner’s share of accumulated loss is debited to his capital account, so it is deducted from the amount due. Exam tip: subtract the deceased partner’s share of accumulated losses while calculating the net claim.

Related tags

Deceased Partner ShareAccumulated LossesNet ClaimPartnership AccountsRetirement Or Death Of A PartnerDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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