Question

State whether the following statements are true or false :

Total amount due to deceased partner is paid in cash to executor immediately after his death.

Answer 1

False

Explanation: There are two methods that can be adopted for making the payment to the executor, i.e. lump-sum method or instalment method. In the lump-sum method, the payment is made in full, i.e. in one single instalment, whereas in instalment method, payment is made in more than one instalment. So, it is not compulsory to make payment immediately in cash, unless otherwise agreed. Hence, the statement is incorrect.