In a partnership maintaining fluctuating capital accounts, to which account is the deceased partner’s share of profit up to the date of death credited before the final payment?

Correct answer: Deceased partner’s Capital Account

The deceased partner’s share of profit earned up to the date of death is credited to that partner’s Capital Account, increasing the amount payable. The balance is settled subsequently. Purchases and Sales Accounts are not used for this adjustment; the Cash Account is affected only when payment is made. Exam tip: Under the fluctuating-capital method, such adjustments are made through the Capital Account, whereas under the fixed-capital method they are generally made through the Current Account.