Question

Give a word / term / phrase which can substitute each of the following statements :

The account to which deceased partners capital balance is transferred.

Answer 1

Deceased Partner’s Executors’ Loan Account

Explanation: The account to which deceased partner’s capital balance is transferred is known as Deceased Partner’s Executors’ Loan Account. The amount due is transferred to this account because actually, the payment is required to be made to the heirs of the deceased partner. The payment may be made in full, i.e. in one instalment or in more than one instalment.