Partnership

Retirement/Death

Medium

(A) Opening balance of his capital
(B) His share of profit/loss till the date of death
(C) His share of General Reserve
(D) His drawings till the date of death
(E) Amount paid to his executors

The Deceased Partner's Capital Account includes the following amount/balances:

(A), (B), (D) and (E) only

(A), (B), (C) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (E) only

✅ Correct Option: 2

Opening balance of his capital ➔ ✅ (Included)

Reason: ➔ This is the starting capital amount of the deceased partner and forms the base of the account.

His share of profit/loss till the date of death ➔ ✅ (Included)

Reason: ➔ The deceased partner is entitled to a share of profits (or responsible for losses) earned up to the date of death, so it must be adjusted in his capital account.

His share of General Reserve ➔ ✅ (Included)

Reason: ➔ General Reserve is distributed among all partners (including the deceased), so his share is credited to his capital account.

His drawings till the date of death ➔ ✅ (Included)

Reason: ➔ Drawings reduce the partner's capital, so any amount withdrawn is debited to his capital account.

Amount paid to his executors ➔ ❌ (Not Included)

Reason: ➔ This is the final payment made after the capital account is settled; it is not part of the capital account itself. The amount paid to executors is recorded separately in the Executor's Account.

Conclusion: The Deceased Partner's Capital Account includes (A), (B), (C) and (D) only. Therefore, the correct answer is Option 2.

2025: 29 May Shift 2

Various accounting aspects involved on retirement or death of a partner are as follows

(A) Adjustment in respect of unrecorded assets and liabilities

(B) Treatment of goodwill

(D) Preparation of Executor's A/c

Choose the correct answer from the options given below:

2026: 19 May Shift 1

Anil, Bhanu and Chandu were partners in a firm sharing profits in the ratio of 5:3:2. Anil died on May 1, 2025. Half of the amount due to Anil is paid immediately. Choose the correct order of the following entries/ adjustments in the books of account:

(A) Pay half of the amount due to Anil's executor.

(B) Pay remaining half of the amount due with interest to Anil's executor in the next year.

(D) Provide for interest on capital and share of profit/loss till the date of death.

Choose the correct sequence of above adjustments from the options given below:

2026: 24 May Shift 1

A, B and C are partners in a firm sharing profits in the ratio of 3:2:1. Firm is maintaining fixed capital accounts. B retired and the value of goodwill of the firm is valued at Rs. 1,80,000.

The journal entry for adjustment of goodwill will be :

2022: 20 Aug Shift 2

If X share of profit was to be calculated on the basis of Average Profit of the last three years, which were Rs. 1,36,000 for 2018-19, Rs. 1,54,000 for 2019-20 and Rs. 1,00,000 for 2020-21. X share of profit for the period from April 01, 2020 to June 30, 2020 shall be calculated on the basis of Average Profit. The profit sharing ration is 4 : 5 : 1 between X, Y and Z.

His share of profit will be:

2026: 13 May Shift 1

Prince, Queen and Raja are partners sharing profit and losses in the ratio 5:4:3. Raja retires and Prince and Queen decide to share future profits equally. Gaining Ratio will be :-

2025: 27 May Shift 1

Murli, Naveen and Omprakash are partners sharing profits in the ratio of 3 /8 , 1/2 and 1/8 . Murli retires and surrenders 2/3rd of his share in favour of Naveen and the remaining share in favour of Omprakash. The gaining ratio of the remaining partners is-

The Deceased Partner's Capital Account includes the following amount/balances:

Solution

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