Question

In the absence of proper agreement, representative of the deceased partner is entitled to the dead partner's share in __________________________.

• A. Profit till date, goodwill, joint life policy, share in revalued assets and liabilities.
• B. Capital, goodwill, joint life policy, interest on capital, share in revalued assets and liabilities.
• C. Capital, profits till date, goodwill, interest on capital, share in revalued assets and liabilities.
• D. Capital, profits till date, goodwill, joint life policy, share in revalued assets and liabilities.

Answer 1

The correct option is A Profit till date, goodwill, joint life policy, share in revalued assets and liabilities.

When any partner is died, his representative is entitled to all the amounts he will get due to termination of his partnership.

Profit earned by firm is divided amongst partners in their respective ratios. The deceased partner's representative receives the partner's profit till the date of his death.

Another amount he receives is his share in the goodwill. As per his ratio in profits, his representative will receive amount of goodwill that is entitled to deceased partner.

Life joint policy is also taken by representative since it was registered on the name of deceased partner.

The last item he is entitled with is his share in revalued amounts of assets and liabilities. Since all these assets and liabilities were linked to the deceased partner during his tenure he has the right to receive any amount due to these items.