Question

State whether the following statements is true or false :

Deceased Partner’s share in profit up to the date of his death will be debited to his capital A/c.

Options

• True

• False

Answer 1

False

Explanation: The deceased partner’s share in profit up to the date of his death will be credited to his capital account, as the amount is required to be paid to him. Thereafter, this amount is transferred to his Executors’ Loan Account.