Retirement And Death Of A Partner

Step 1: Find old shares.
Old ratio ⇒ .
Step 2: Note new shares of continuing partners.
New ratio ⇒ .
Step 3: Compute gains (New − Old).
’s gain . ’s gain .
Step 4: Express as a ratio.
.
Final Answer: % Quciktip

Step 1: Nature of Executor’s A/c.
Executor’s A/c is used to represent the legal heirs of the deceased partner to whom final dues are payable.
Step 2: Timing of opening.
This account is specifically opened only on the death of a partner, not on retirement or admission.
Step 3: Conclude.
Therefore, Executor’s A/c is opened when a partner dies.
Final Answer:

Step 1: Treatment of deceased partner’s share.
When a partner dies, his share of capital, accumulated profits, goodwill, and revaluation balance is calculated.
Step 2: Transfer to Executor’s A/c.
The balance due to the deceased partner is transferred from his Capital A/c to his Executor’s A/c (since payment is made to his legal representative).
Step 3: Conclude.
Thus, the final settlement is routed through Executor’s A/c.
Final Answer: