CUET Accountancy 2024
Accountancy
Retirement/Death of a Partner
Medium
- (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
The Deceased Partner's Capital Account includes the following amount/balances:
The Deceased Partner's Capital Account includes the following amount/balances:
Correct Option: 2
The Deceased Partner's Capital Account shows what the partner owned in the business when they died.It includes:A - Opening balance of his capital: This is what he had invested.B - His share of profit/loss till the date of death: This shows how much he earned or lost before he died.C - His share of General Reserve: This is part of the profits set aside for future use.D - His drawings till the date of death: This is money he took out for personal use.E - Amount paid to his executors: This is what is given to those handling his estate.The correct option is 2 because it includes A, B, C, and D, which are all relevant to his capital account. Drawings and payments to executors are not included in the capital account.
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CUET Accountancy 2024