Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

What is the sequence of making account by a partnership firm at the time of death of a partner?
A) Capital A/c
B) Balance sheet
C) Executor A/c
D) Revaluation A/c

Options:

ABCD

DCBA

ACBD

DACB

Correct Answer:

DACB

Explanation:

The correct answer is option 4- DACB.

The correct sequence of making accounts by a partnership firm at the time of the death of a partner is:

D) Revaluation A/c - This account is prepared to adjust the values of assets and liabilities to their current values at the time of a partner's death.

A) Capital A/c - The deceased partner's capital account needs to be settled.

C) Executor A/c - This account is used to transfer the deceased partner's share of profits and liabilities to their executor.

B) Balance sheet- Finally, a new balance sheet is prepared to reflect the current financial position of the partnership after adjustments.