Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

Where will the balance of the deceased partner's capital account be transferred after doing all adjustments by a partnership firm? 

Options:

His Current A/c

His Spouse A/c

His executor's A/c

None of these

Correct Answer:

His executor's A/c

Explanation:

All the adjustments are being made in the capital account of the deceased partner and then the balance of the capital account is transferred to his executor’s account. The legal representative of the partner is entitled to claim the following amount in case of the death of the partner: The amount which is standing to the credit of his capital account.