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When the deceased partner’s estimated share of profit up to the date of death is credited to the partner’s capital account, how is the amount payable to the legal representative affected?

Answer and explanation

Correct answer: Increases

The deceased partner’s share of profit earned up to the date of death is credited to the partner’s capital account. This increases the capital balance, which forms part of the amount payable to the legal representative after other adjustments. Therefore, the claim increases. Exam tip: a share of profit is credited, whereas a share of loss is debited.

Related tags

Partnership AccountsRetirement And DeathDeceased PartnerProfit Till DeathLegal RepresentativeDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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