Executor account is prepared on...........

Death of a partner

The correct answer is option 4- Death of a partner.

Executor account is prepared on Death of a partner.

Executor account is made at the time of death of a partner to transfer the remaining balance of the deceased partner. The accounting treatment for disposal of amount due to retiring partner and deceased partner is similar with a difference that in case of death of a partner, the amount credited to him/her is transferred to his Executors’ Account and the payment has to be made to him/her. The final settlement made to the deceased partner's represents the total amount owed to the deceased partner, which would be the ending balance of the capital account after all adjustments. The balance of the capital account is transferred to the executor account which is paid by the firm to the executor of deceased partner or it is transferred to loan account of executor.  So, executor account is made at the time of death of partner