Question : Name two items which are credited to the Capital Account of a partner upon his death.
Option 1: Share of profit
Option 2: Share of goodwill
Option 3: Both 1 and 2
Option 4: None of the above
Answer (1)
27th Jan, 2024
Correct Answer: Both 1 and 2
Solution : Answer = Both 1 and 2
Upon a partner's death, both their share of profit and their share of goodwill are credited to their Capital Account. This reflects their entitlement to the profits generated by the partnership during their tenure and their share of the value of goodwill accrued by the partnership. Therefore, the correct answer is option C, "Both A and B."
Hence, the correct option is 3.
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