Question

in the event if the death of a partner.what happened with the combined share of profit of continuing partner
​

Answer 1

In the event of the death of a partner a suspense account is opened to share the combined profits.

• The partnership ceases existing upon a partner's death. But as the other remaining partners will wish to continue the business, the notable company may not shut down.  
• In the event of a partner's death, handling of financial elements such as goodwill or profit is identical to that of retirement.
• In the event of a partner's death, the Profit and Loss Suspense Account is created to properly credit the share of the considerable profit in the capital account of the deceased partner until the time of his death.

Answer 2

Explanation:

In partnership, there are two main business parameters, profit and Goodwill. Profit is simply the gain that business is getting which is divided among partners as per shares agreed. Goodwill is the value of reputation of a firm in respect of profits expected in future over and above the normal rates of profits.

DEATH OF PARTNER

Under this scenario, the continuing partners will compensate the share of profit due to the heirs of the deceased partner