Question

On the death of a partner, final payment is made through:

• A. Capital A/c
• B. Executor’s A/c
• C. Both (A) and (B)
• D. Loan A/c

Hint:

On death of a partner, Capital A/c is first settled, then the final balance is transferred to Executor’s A/c for payment.

Answer 1

The Correct Option is B

Step 1: Treatment of deceased partner’s share.
When a partner dies, his share of capital, accumulated profits, goodwill, and revaluation balance is calculated.
Step 2: Transfer to Executor’s A/c.
The balance due to the deceased partner is transferred from his Capital A/c to his Executor’s A/c (since payment is made to his legal representative).
Step 3: Conclude.
Thus, the final settlement is routed through Executor’s A/c.
Final Answer: \[ \boxed{\text{Executor’s A/c}} \]