Question

Amount due from the deceased partner is transferred to ______.

Options

• The credit of Executor’s Account.

• The debit of Executor’s Account.

• The credit of remaining or continuing partners in their profit-sharing ratio.

• The debit of remaining or continuing partners in their profit-sharing ratio.

Answer 1

Amount due from the deceased partner is transferred to the credit of the Executor’s Account.

Explanation:

When a partner dies, their final dues are calculated, and their Capital Account must be closed. This total amount is legally transferred to their legal representative by crediting their account, as it becomes a liability for the firm. The required journal entry is: Deceased Partner’s Capital A/c Dr. to Deceased Partner’s Executor’s A/c. Therefore, the amount is posted to the credit side of the Executor’s Account.