Upon a partner's demise, the following sums are transferred to the deceased partner’s capital account:
1. The capital account balance as of the date of death.
2. Their allocated portion of accumulated profits or losses.
3. Their share of goodwill, where applicable.
4. Any outstanding loan owed by the firm to the deceased partner.
The journal entry recorded upon a partner's death is:
To Deceased Partner’s Capital Account (Capital balance and share of profits)