Question

The deceased partner's capital account is debited with his share of the following amounts:

• A. Drawings
• B. Interest on drawings from the beginning of the year to the date of death
• C. Loss on revaluation of assets and liabilities
• D. All of these

Answer 1

Answer: (D)

All of these

The partner's capital account is an equity account in the accounting records of a partnership. It contains the following type of transactions:

1. Initial and subsequent contributions by the partners to the partnership, in the form of either cash or the market value of other types of assets.

2. Profits and losses earned by the business, and allocate to partners based on the provisions of the partnership agreement.

3. Distributions to partners.

Following are the things which are debited to deceased partner's capital account with his share:

1. Drawings

2. Interest in drawings from the beginning of the year to the date of his death.

3. Loss on revaluation of assets and liabilities.