Question

Objective Questions :
Answer in one Sentence :

How much amount due to the deceased partner is calculated?

Answer 1

The heir of the deceased partner is entitled to receive the amount standing to the credit of Deceased Partner’s Capital Account, his share in goodwill, share in profits, revaluation of assets and liabilities, interest on capital etc. Moreover, amounts, such as share in accumulated losses, drawings, interest on such drawings etc., are debited. After making all the above adjustments, the amount standing in his/her capital account is transferred to a new account opened in the name of his/her executor.