The deceased partner's capital account includes the following amount/balances:
(A) Opening balance of his capital
(B) His share of profit/loss till the date of death
(C) His share in general reserve
(D) His drawings till the date of death
(E) Amount paid to his executors
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (B), (C), and (D) only
The deceased partner’s capital account collects everything due to him or charged to him up to the date of death. Its final balance is then transferred to his executors’ account.
(A) Opening balance of his capital Correct. The account starts with his capital balance.
(B) His share of profit/loss till the date of death Correct. His share of profit is credited (or loss debited) up to the date of death.
(C) His share in general reserve Correct. Accumulated profits such as general reserve are credited in the old ratio.
(D) His drawings till the date of death Correct. Drawings are debited, reducing the amount due.
(E) Amount paid to his executors Incorrect. The balance is first transferred to the executors’ account, and the payment is recorded there, not in the capital account.
NCERT (2026-27 edition):
NCERT (2026-27 edition): |
