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On the death of a partner, ₹91,000 stands to the credit of the partner’s Capital Account, ₹1,000 is debited for drawings, and ₹10,000 is to be credited for the partner’s share of goodwill. Ignoring other adjustments, what will be the net claim payable to the deceased partner’s legal representative?

Answer and explanation

Correct answer: ₹1,00,000

Net claim = Capital balance + the deceased partner’s share of goodwill − Drawings = ₹91,000 + ₹10,000 − ₹1,000 = ₹1,00,000. Therefore, option C is correct. Option B makes an additional deduction of ₹1,000. Exam tip: Add all credit items due to the deceased partner and deduct debit items such as drawings.

Related tags

AccountancyPartnership AccountsPartner RetirementDeceased Partner ShareGoodwillNet ClaimDeceased Partner’s ShareDeceased Partner S Share

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