Can someone tell me what I need to study from death of partner class 12 accountancy chapter as executor account and partners capitals account are deleted so what exactly are they gonna ask from this chapter in exams?? please help
Answers
Explanation:
Death of A Partner The partnership comes to an end immediately, whenever a partner dies although the firm may continue with the remaining partners.
The deceased partner is entitled to get his share in the firm as per the provision of a partnership agreement. His share in the firm is calculated in the same manner as in the case of a retiring partner.
Accounting Treatment of Deceased Partners’ Share in Profits If a partner dies on any date after the date of the balance sheet, then his share of profit is calculated from the beginning of the year to the date of death on the basis of time or sales. When share of profit is calculated on the basis of time, it may be on the basis of previous years’ profit or average profit of past years.
Ascertainment of the Amount Due to the Deceased Partner The deceased partner’s share is also calculated in the same manner as in the case of retiring partner. Amount due to a deceased partner shown by his capital account is transferred to his executors’ account by passing the following journal entry
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