Which of the following statement is true ?
- ADecreased partner is not given share in profit if he dies in mid of the year as he has not rendered services for the entire year.
- BThe amount payable to decreased partner is transferred to his Loan A/c.
- CThe balance amount in decreased Partner's Capital is credited to his Executor's A/c.
- DThe decreased partner's share in profit is calculated on the basis of turnover method only.
Solution & Step-by-step Explanation
When a partner dies, their legal representative or executor is entitled to receive the dues. The final balance in the deceased partner's Capital Account is transferred to the Deceased Partner's Executor's Account.Option A is false (share of profit is given up to date of death).Option B is false (it is transferred to Executor's A/c, not a standard loan A/c under their own name).Option D is false (profit can be estimated based on time/average profit or turnover).