If interest is payable under the partnership deed, how is the interest accrued on the deceased partner’s capital up to the date of death treated?

Correct answer: Credited to the deceased partner’s account and added to the claim

When interest is payable under the partnership deed, interest accrued on capital up to the date of death is credited to the deceased partner’s capital account. It increases the amount payable to the deceased partner and therefore forms part of the claim. Debiting it would reduce the amount due and is incorrect. Exam tip: Include interest up to the date of death, along with the deceased partner’s share of profit and goodwill, while calculating the final claim.