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Question
On the death of a partner, the amount due to him will be credited to ______.
Options
All partner’s Capital Accounts
Remaining partner’s Capital Accounts
His Executor’s Account
Government’s Revenue Account
MCQ
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Solution
On the death of a partner, the amount due to him will be credited to His Executor’s Account.
Explanation:
On the death of a partner, the firm settles his dues through his executor, who represents the deceased partner legally. All amounts due, including capital, share of goodwill, revaluation profit/loss, and accrued profit, are credited to the executor's account. This account will then be settled by payment in lump sum or installments as agreed.
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