What will be the sequence of events in case of death of a partner in a partnership firm?

(A) Prepare Deceased Partner's Executor's A/c

(B) Prepare Deceased Partner's Capital A/c

(C) Calculate share of Profit upto date of death for the deceased partner

(D) Revaluation of assets and liabilities

Choose the correct answer from the options given below:

(D), (C), (B), (A)

Correct answer: Option (1) → (D), (C), (B), (A)

Concept: Sequence of adjustments on the death of a partner, per Reconstitution of a Partnership Firm – Retirement/Death of a Partner.

(D) First revalue assets and liabilities (Revaluation A/c) → (C) calculate the deceased partner’s share of profit up to the date of death → (B) prepare the Deceased Partner’s Capital A/c to ascertain the amount due → (A) transfer that amount to the Deceased Partner’s Executor’s A/c. Hence D, C, B, A.