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Which of the following items is generally not included in the final calculation of a deceased partner’s claim?

Answer and explanation

Correct answer: Profit of future years

A deceased partner’s claim generally includes profit earned up to the date of death, the partner’s share of goodwill, and the partner’s share of reserves. Profit earned in future years is not normally credited because the partner is no longer associated with the firm after death. Exam tip: check whether each item relates to the partner’s rights up to the date of death.

Related tags

Deceased Partner SharePartnership AccountsGoodwillProfit Until DeathDeath Of PartnerDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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