Accountancy class 12 Death of a Partner notes

 Death of a partner.... Short & Easy Notes for Board Exam

#1. How will you calculate the amount payable to executor of death partner?

=> The executor of deceased partner are entitled to the following;

Items, to be credited or added;

i. Opening balance of capital and current account.

ii. His share of profit.

iii. His share of Reserve.

iv. His share in goodwill.

v. His share on revaluation of Assets and liabilities.

vi His share of Joint life policy.

vii. Interest on capital.

viii. Salaries and commission.

Item to be debited or deducted;

i. His drawing till death.

ii. Interest on drawing.

iii. Share of loss.

iv. Share of loss in revaluation of Assets and liabilities.

v. Share of goodwill written off.

#2. What problems do arises on death of a partner?

=> In death of a partner, normally the firm is automatically dissolved. In case of death of a partner the estate of the deceased partner is not liable for any act of the firm done after his death.

        THE END

PARTNERSHIP FIRM

GOODWILL