Practicing Success

Target Exam

CUET

Subject

Accountancy

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:

First of all revaluation A/c is made to revalue and reassess the assets and liabilities of the partnership firm. After it the capital account of the all the partners including deceased partner is made out to know the final balances of their capital account. After the capital account, the deceased partner capital balance is transferred to the executor account. At last the balance sheet of the partnership firm is made to know the financial position of the firm.