What is the correct sequence at the time of death of a partner? (A) A…

What is the correct sequence at the time of death of a partner?

(A) Amount paid to Executor
(B) Preparation of Revaluation account
(C) Calculation of Amount Payable to executor of Deceased partner
(D) Calculation of Revaluation Gain/Loss
(E) Balance of Executor's loan A/c

Choose the correct answer from the options given below.

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → (B), (D), (C), (A), (E)

The steps follow the order in which the deceased partner’s claim is built up and then settled:

(B) Preparation of Revaluation account – assets and liabilities are revalued first.
(D) Calculation of Revaluation Gain/Loss – the balance of the Revaluation Account is found and shared among all partners.
(C) Calculation of Amount Payable to executor – the deceased partner’s capital, with all adjustments, is transferred to his executors.
(A) Amount paid to Executor – the firm pays what it can.
(E) Balance of Executor’s loan A/c – any amount not paid is kept as a loan due to the executors.

NCERT (2026-27 edition):
Adjustment for Revaluation of Assets and Liabilities – “… As learnt in case of admission of a partner, a Revaluation Account is prepared in order to ascertain net gain (loss) on revaluation of assets and/or liabilities and bringing unrecorded items into firm’s books and the same is transferred to the capital account of all partners including retiring/deceased partners in their old profit sharing ratio.”

NCERT (2026-27 edition):
Disposal of Amount Due to Retiring Partner – “… It may noted that 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. This shall be taken up later in this chapter.”

NCERT (2026-27 edition):
Disposal of Amount Due to Retiring Partner – “… In case the firm is not in a position to make the payment immediately, the amount due is transferred to the retiring Partner’s Loan Account, and as and when the amount is paid it is debited to his account. The necessary journal entries recorded are as follows.”