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.

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

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

The correct sequence at the time of death of a partner is as follows-

* Preparation of Revaluation account (B): This step involves assessing and adjusting the values of assets and liabilities of the partnership. It's essential to account for any changes in the partnership's financial position due to the death of a partner.

* Calculation of Revaluation Gain/Loss (D): After preparing the Revaluation account, the gain or loss resulting from the adjustments is calculated. This loss or gain is distributed between all partners in their old ratio.

* Calculation of Amount Payable to executor of Deceased partner (C): Once the revaluation adjustments are made, the next step is to calculate the amount payable to the executor of the deceased partner. This involves determining the deceased partner's share in the firm.

* Amount paid to Executor (A): After calculating the amount payable to the executor, the actual payment is made to settle the deceased partner's share. This payment is typically made to the executor of the deceased partner's estate.

* Balance of Executor's loan A/c (E): Finally, any remaining balance is transferred to the executor's loan account.