Question

Various accounting aspects involved on death of a partner are as follows: (A) Adjustment in respect of unrecorded assets and liabilities
(B) Treatment of goodwill
(C) Preparation of Realization A/c
(D) Preparation of Executor's loan A/c
Choose the correct answer from the options given below:

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

Hint:

Remember: Realisation A/c is only for dissolution. In case of retirement or death, adjustments and Executor's Loan A/c are prepared.

Answer 1

The Correct Option is B

Step 1: Handling a Partner's Death.
- Assets and liabilities are revalued, including unrecorded ones.
- Goodwill is accounted for to compensate the deceased partner. - An Executor's Loan Account is established to manage payments due to the deceased partner's legal representative. - A Realization Account is omitted, as it is only prepared upon dissolution, not partner death.

Step 2: Validating the Solution.
Consequently, the correct options are (A), (B), and (D).

Final Answer: \[\boxed{(A), (B) \text{ and } (D) \text{ only}}\]