Question

If the partnership firm has enough bank balance to settle immediately the payment of the deceased partner, the journal entry for settlement is -

• A. None of the above
• B. Existing Partner's Account Dr. To Bank A/c
• C. Deceased Partner's Executor's Account Dr. To Bank A/c
• D. Deceased Partner's Account Dr. To Bank A/c

Answer 1

The correct option is C

Deceased Partner's Executor's Account Dr.

To Bank A/c

If the partnership firm has enough bank balance to settle immediately the payment of the deceased partner, the journal entry for settlement is -

Deceased Partner's Executor's Account Dr.

To Bank A/c