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A deceased partner’s capital is ₹76,000, his share of goodwill is ₹14,000, and his share of profit up to the date of death is ₹10,000. What will be the total amount payable to his legal representative?

Answer and explanation

Correct answer: ₹1,00,000

The amount payable to the deceased partner’s legal representative includes his capital, share of goodwill, and share of profit up to the date of death. Therefore, total claim = ₹76,000 + ₹14,000 + ₹10,000 = ₹1,00,000. Amounts such as ₹98,000 or ₹1,02,000 result from an incorrect addition. Exam tip: Add all relevant credit items in the deceased partner’s account and deduct liabilities or drawings if they are given.

Related tags

Deceased Partner SharePartnership ReconstitutionGoodwill AdjustmentProfit Up To DeathPartner SettlementDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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