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After a partner’s death, up to what point may interest be added to the deceased partner’s account?

Answer and explanation

Correct answer: Interest accrued up to the date of death

If the partnership deed provides for interest on capital, the deceased partner is credited with interest only for the period up to the date of death. This amount is recorded in the deceased partner’s Capital or Current Account and forms part of the amount payable to the executor. Interest for the period after death, including up to the end of the accounting year, is not credited to the deceased partner. Exam tip: For items relating to a deceased partner, calculate the entitlement only up to the date of death.

Related tags

Deceased Partner ShareInterest On CapitalPartnership ReconstitutionRetirement Or DeathAccountancy Class 12Deceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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