Question

How would you compute the amount due to a deceased partner's executor?

Answer 1

On the death of a partner, accounts in the books of the firm are maintained in the same way as on the retirement of a partner. Thus the legal representatives of the deceased partner are entitled to claim the following amounts, which are credited to his capital account: 1.

Answer 2

Answer:

1. The amount standing in the deceased partner’s Capital A/c.

2. The amount of Interest on Capital up to the date of death, if partnership deed so provides.

3. Deceased partner’s share of Goodwill of the firm.

4. Deceased partner’s share in the reserves or the undistributed profits, if any.

5. The deceased partner’s share of the Joint Life Policy amount received on his death.

6. The share of the deceased partner in Profit on Revaluation of assets and liabilities.

7. Deceased partner’s share of profit up to the date of his death.