Question

What is the correct sequence at the time of death of a partner? 
(A) Amount paid to Executor 
(B) Preparation of Revaluation account 
(C) Calculation of Amount Payable to executor of Deceased partner 
(D) Calculation of Revaluation Gain/Loss 
(E) Balance of Executor's loan A/c 
Choose the correct answer from the options given below:

• A. (B), (D), (C), (A), (E)
• B. (B), (D), (A), (C), (E)
• C. (D), (B), (C), (A), (E)
• D. (D), (B), (A), (C), (E)

Hint:

At partner’s death: revalue assets → calculate gain/loss → compute amount payable → pay executor → adjust executor’s loan account.

Answer 1

The Correct Option is A

Step 1: Preparation of Revaluation Account 
At the time of death of a partner, the first step is to revalue the assets and liabilities of the firm. This is done by preparing the Revaluation Account to calculate the gain or loss on revaluation. 
Step 2: Calculation of Revaluation Gain/Loss 
After preparing the Revaluation Account, the gain or loss is calculated and transferred to partners capital accounts in their profit sharing ratio. 
Step 3: Calculation of Amount Payable to Executor 
Next, the amount due to the deceased partner's executor is calculated based on the deceased partner's capital account balance, share of profits, and adjustments for revaluation. 
Step 4: Payment to Executor 
After calculation, the firm pays the amount due to the executor. 
Step 5: Balance of Executor's Loan Account 
Finally, the balance in Executor's Loan Account (if any) is determined and recorded. 
Step 6: Conclusion 
Hence, the correct sequence is: \((B), (D), (C), (A), (E)\).