Question

Select the correct sequence of accounts prepared in case of death of a partner.
(A) Prepare the deceased partner's executor's account.
(B) Determine the gaining ratio and new profit sharing ratio among the remaining partners.
(C) Prepare the deceased partner's capital account.
(D) Prepare the Revaluation account, if required.
Choose the correct answer from the options given below:

• A. (A), (B), (C), (D)
• B. (A), (B), (D), (C)
• C. (B), (C), (D), (A)
• D. (B), (D), (C), (A)

Hint:

End with the executor, since the capital balance decides what is due to him.

Answer 1

The Correct Option is D

Step 1: Work backwards from the executor:
The executor is paid the final balance of the deceased partner's capital account. So the executor's account (A) is the last item.

Step 2: What feeds the capital account:
The capital account has credits like reserves and the share of revaluation profit and goodwill. So the Revaluation account (D) and the ratio work (B) must be done before it (C).

Step 3: Ratio versus revaluation:
Both are needed before capital, but the ratio (B) is a calculation that also guides goodwill treatment, so we do it first. Revaluation (D) then follows.

Step 4: Build the chain:
B, then D, then C, then A. Compare with the options: only option 4 shows (B), (D), (C), (A).

Final Answer:
The sequence B, D, C, A is option 4. \[ \boxed{\text{(B), (D), (C), (A) (Option 4)}} \]