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Payment of the deceased partner’s share of profit earned up to the date of death settles whose claim?

Answer and explanation

Correct answer: Legal representatives of the deceased partner

The deceased partner’s share of profit earned up to the date of death is payable to the partner’s legal representatives. It is credited to the representatives’ account along with the deceased partner’s capital, current account and other adjustments; payment of this amount settles their claim. Customers, suppliers and the bank are not claimants to the deceased partner’s profit share. Exam tip: Include profit up to the date of death in the amount payable to the deceased partner’s legal representatives.

Related tags

Partnership AccountsPartner RetirementDeath Of PartnerDeceased Partner ProfitLegal RepresentativesClaim SettlementDeceased Partner’s ShareDeceased Partner S Share

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