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Why is the deceased partner’s share of profit earned up to the date of death credited to his account?

Answer and explanation

Correct answer: Because he was a partner during that period

Profit earned up to the date of death belongs to the period during which the deceased was a partner of the firm. Therefore, his proportionate share is credited to his capital or current account and is ultimately payable to his legal representative or executor. The entitlement arises from his status as a partner, not as a creditor or customer. Exam tip: Calculate the deceased partner’s profit share only for the period from the beginning of the accounting period up to the date of death.

Related tags

Deceased Partner ShareRetirement Or Death Of PartnerPartnership AccountsProfit Up To DeathPartner SettlementDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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