When transferring amount from deceased partner capital account to executor loan account which account is credited?

Correct answer: Executor loan account

The direct answer is A: the executor loan account is credited. When a partner dies, the amount finally due to the deceased partner is transferred to the executor’s account if it is not paid immediately. The journal logic is: debit the deceased partner’s capital account because its credit balance is closed, and credit the executor loan account because the firm now acknowledges a liability payable to the executor. Option A is correct because the executor becomes the party to whom the amount is owed. Option B is wrong because the deceased partner’s capital account is debited, not credited, when it is transferred out. Option C is wrong because bank is credited only when money is actually paid; this step is a transfer of liability, not payment. Option D is wrong because Profit and Loss Account is not the account receiving this payable amount. Memory cue: the receiver of the liability is credited; actual payment later credits Bank.