Practicing Success
What will the partnership firm do, if the deceased partner's capital account showed a debit balance? |
Transfer to his loan account Transfer to P & L account Recovered from the private estate of the deceased partner Recovered from the private estate of remaining partners |
Recovered from the private estate of the deceased partner |
As partner's liability is unlimited, if the deceased partner's capital account showed a debit balance then this amount can be given by his executor to the firm or recovered from his private estate by the firm. |