Question

Various accounting aspects involved on death of a partner are as follows: (A) Adjustment in respect of unrecorded assets and liabilities
(B) Treatment of goodwill
(C) Preparation of Realization A/c
(D) Preparation of Executor's loan A/c
Choose the correct answer from the options given below:

• A. (A), (B) and (C) only
• B. (A), (B) and (D) only
• C. (A), (B), (C) and (D)
• D. (B), (C) and (D) only

Hint:

Remember: Realisation A/c is only for dissolution. In case of retirement or death, adjustments and Executor's Loan A/c are prepared.

Answer 1

The Correct Option is B

Step 1: Treatment on death of a partner.
- Adjustment for revaluation of assets and liabilities (including unrecorded).
- Treatment of goodwill (to compensate deceased partner).
- Executor's Loan A/c prepared (since deceased partner's dues are paid to his legal representative).
- Realization A/c is not prepared (it is prepared only at dissolution, not on death).

Step 2: Correct set.
Therefore, correct answer = (A), (B), and (D).

Final Answer: \[ \boxed{(A), (B) \text{ and } (D) \text{ only}} \]