Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

On the death of a partner, the amount due to him will be credited to :

Options:

All partner's Capital Accounts

Remaining partner's Capital Accounts

His Executor's Account

Government Revenue Account

Correct Answer:

His Executor's Account

Explanation:

The correct answer is option 3- His Executor's Account.

The accounting treatment in the event of 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.