When the deceased partner’s share of profit up to the date of death is credited to the partner’s capital/current account, what is the effect on the account’s credit balance?

Correct answer: The credit balance increases

The deceased partner’s share of profit earned up to the date of death is credited to the capital account, or to the current account under the fixed-capital method. This credit increases the account’s credit balance, which forms part of the amount payable to the deceased partner’s legal representative. Debit items such as drawings or the share of loss would have the opposite effect. Exam tip: a partner’s share of profit is credited to the partner’s account.