Question

The Deceased Partners Capital Account includes the following amount/balances:
(A) Opening balance of his capital
(B) His share of profit/loss till the date of death
(C) His share of General Reserve
.(D) His drawings till the date of death
(E) Amount paid to his executors

• A. A, B, D, and E only
• B. A, B, C, and E only
• C. A, B, and C only
• D. A, B, C, and D only

Answer 1

The Correct Option is D

The Deceased Partner's Capital Account includes the following balances: 

• (A) Opening balance of his capital: The initial balance in the partner’s capital account.
• (B) His share of profit/loss till the date of death: The share of profit or loss that the partner is entitled to up to the date of death.
• (C) His share of General Reserve: If there is a general reserve, the deceased partner is entitled to their share of it, which is included in their capital account.
• (D) His drawings till the date of death: Any drawings made by the deceased partner until the date of death will be deducted from the capital account.
• (E) Amount paid to his executors: This is not included in the partner’s capital account; instead, it is considered part of the settlement to the executors.

Thus, the correct answer is:

(4) (A), (B), (C) and (D) only

Answer 2

Adjustments to a Deceased Partner's Capital Account

When a partner dies, certain adjustments are made to their capital account to determine the amount payable to the partner's executors (legal representatives). The following items are typically included in the deceased partner's capital account:

1. Opening Balance of Capital (A): This is the initial capital balance of the deceased partner at the start of the financial period. It represents the partner's investment in the firm.
2. Share of Profit/Loss Till Date of Death (B): The deceased partner’s share in the profit or loss from the beginning of the financial year until their date of death is credited (if profit) or debited (if loss) to the account. This reflects the partner's earnings during their time in the firm during the current period.
3. Share of General Reserve (C): The partner’s share in any accumulated reserves, such as the general reserve, is credited to their capital account. These reserves represent undistributed profits from previous years that the partner is entitled to.
4. Drawings (D): Drawings made by the partner until the date of death are debited from the partner’s capital account. Drawings represent withdrawals of capital made by the partner during their lifetime. While drawings are relevant, the question specifically asked about items included as *balances or amounts credited* - drawings are debited.
5. Interest on Capital (If applicable): Interest on Capital, if applicable, is credited to the account.
6. Goodwill (Share of Goodwill): Share of goodwill is also adjusted in the partner’s capital account and is added as per his share of the goodwill.
7. Amount Paid to Executors (E): This represents the final settlement amount paid to the partner’s estate after adjusting all credits and debits as mentioned above. This is the resulting amount, *not an initial amount or balance*.

Based on the question's focus on items included as *balances or amounts credited* (other than the final settlement), and considering common capital account adjustments, the relevant items are A, B, and C.

Therefore, the answer based on the provided context and the question's wording is Option (4): (A), (B), and (C) only.

Note that D (drawings) is important as it's *debited*, but not an amount credited. Also note E is a resulting balance of all the adjustment, not an amount adjusted.