Choose the correct combination related to death of a partner:
(A) In case of death of a partner his claim is transferred to his executors.
(B) Deceased partner's share of profit may be calculated on the basis of last year's profit or on the basis of sales.
(C) Deceased partner's share of general reserve shall be calculated till the date of his death only.
(D) Deceased partner's claim shall include his interest on capital, interest on drawings (if any) till the date of his death.
Choose the correct combination related to death of a partner:
(A) In case of death of a partner his claim is transferred to his executors.
(B) Deceased partner's share of profit may be calculated on the basis of last year's profit or on the basis of sales.
(C) Deceased partner's share of general reserve shall be calculated till the date of his death only.
(D) Deceased partner's claim shall include his interest on capital, interest on drawings (if any) till the date of his death.
Solution
(A) is correct: the deceased partner's dues are payable to his executors. (B) is correct: his share of profit up to death may be estimated on the basis of last year's profit (time basis) or on the basis of sales. (D) is correct: interest on capital and drawings is computed up to the date of death. (C) is incorrect: general reserve is an accumulated past profit, so his full share in the old ratio is given; it is not time-apportioned.
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