Question : At the time of the death of a partner deceased partner's Drawings and Interest on drawings will be ----------- to his capital account.
Option 1: Debited
Option 2: Credited
Option 3: Either 1 and 2
Option 4: None of the above
Answer (1)
21st Jan, 2024
Correct Answer: Debited
Solution : Answer = Debited
At the time of death of a partner, the deceased partner's Drawings and Interest on Drawings will be debited to his capital account. This adjustment ensures that the deceased partner's capital account accurately reflects the amount owed to or by the partnership at the time of their death.
Hence, the correct option is 1.
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