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/cChoose 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
Solution & Step-by-step Explanation
When a partner dies, the partnership firm undergoes reconstitution (not full dissolution).Statement (A), (B), and (D) are correct accounting aspects because assets/liabilities are updated via a revaluation framework, the deceased partner's share of goodwill is computed and adjusted, and their accumulated balance is transferred to the Deceased Partner's Executor's Account (which can turn into an Executor's Loan Account if not settled immediately).Statement (C) is incorrect because a Realisation Account is prepared only during the complete closing down and liquidation of the firm (Dissolution), not upon the death of an individual partner where the business continues operations.