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To whom is the deceased partner’s share of profit earned up to the date of death ultimately paid?

Answer and explanation

Correct answer: Legal representatives or executors

The deceased partner’s share of profit earned up to the date of death is credited to the deceased partner’s Capital or Current Account and then transferred to the Executor’s Account. The amount is ultimately payable to the executor or legal representatives. The incoming partner becomes a partner in the reconstituted firm but does not receive the deceased partner’s entitlement. Exam tip: Remember the sequence—calculate profit up to the date of death, credit it to the deceased partner, and settle it with the executor or legal representatives.

Related tags

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

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