Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

In which of the following situation, the claim of the deceased partner is transferred to his executor's account?

Options:

Admission of a new partner

Retirement of an old partner

Death of an old partner

Dissolution of the firm

Correct Answer:

Death of an old partner

Explanation:

The correct answer is option 3- Death of an old partner.

The accounting treatment in the event of the death of a partner is similar to that in case of retirement of a partner, and that in case of death of a partner his claim is transferred to his executors and settled in the same manner as that of the retired partner.