Question

Where the continuing partners carry on the business of the firm, the dead partner whose claim is not settled, his executor -
X. is entitled to share of profits since date of
cessation as partner.
Y. is not entitled to claim anything other than
unsettled amount.
Z. is entitled to 6% interest p.a on the unsettled
amount.
Select the correct answer from the options given below :-

• A. Y is correct
• B. Only X is correct
• C. Both are correct
• D. Either X or Z at his option.

Answer 1

The correct option is D Either X or Z at his option.

The deceased partner is entitled to receive every rupee of his share in the firm and hsi representative make sure that this happens.

X and Z are correct with their statements and this is because the representative will receive his share in the profits till the date of his death along with his due amounts. And if they firm is unable to settle the dues they have to pay an interest of 6% p.a. to the representative until they settle the dues.

Y is not correct with his words because deceased has full right to receive his pending dues along with his share in profits and interest on pending amount.