What will be the journal entry for transferring the deceased partner's balance to his executor's account?
Answer & explanation
Correct answer: option 1
The correct answer is option 1-
Deceased Partner’s Capital A/c Dr.
To Deceased Partner’s Executors' A/c
(Transfer balance to executor's account)
The above journal entry is passed to show the reduction in the capital balance of deceased partner and increase the balance in executor account.