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After determining the deceased partner’s share of profit up to the date of death, to which account is the amount ultimately transferred?

Answer and explanation

Correct answer: निष्पादक (कानूनी प्रतिनिधि) का खाता (Executor’s Account)

The deceased partner’s share of profit up to the date of death is first credited to the partner’s capital or current account. The total amount due is then transferred to the Executor’s Account because payment is made to the deceased partner’s executor or legal representative. Purchases, Sales and Expense Accounts do not record this liability. Exam tip: Amounts payable after a partner’s death are ultimately transferred to the Executor’s Account.

Related tags

Partnership AccountsRetirement And DeathDeceased PartnerExecutor AccountProfit SharingDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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