Humanities/Arts Exam  >  Humanities/Arts Questions  >  Which of the following statement is true?a)De... Start Learning for Free
Which of the following statement is true?
  • a)
    Decreased partner is not given share in profit if he dies in mid of the year as he has not rendered services for the entire year.
  • b)
    The amount payable to decreased partner is transferred to his Loan A/c.
  • c)
    The balance amount in decreased Partner’s Capital is credited to his Executor’s A/c.
  • d)
    The decreased partner’s share in profit is calculated on the basis of turnover method only.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Which of the following statement is true?a)Decreased partner is not gi...
Explanation:

Decreased Partner's Capital:
When a partner passes away in the middle of the year, the amount in the decreased partner's Capital Account needs to be settled. This is done by transferring the balance amount in the Capital Account to the Executor's Account.

Transfer to Executor's Account:
The balance amount in the decreased partner's Capital Account is credited to his Executor's Account to settle his share in the partnership. This ensures that the deceased partner's estate receives the appropriate amount from the partnership.

Settling the Partner's Account:
Transferring the balance to the Executor's Account helps in closing the financial records of the decreased partner in the partnership. It ensures that all financial matters related to the deceased partner are appropriately resolved.

Legal and Financial Obligations:
Settling the decreased partner's Capital Account is not only a financial necessity but also a legal requirement to ensure that the deceased partner's estate receives the rightful share from the partnership profits.

Conclusion:
In conclusion, when a partner dies in the middle of the year, the balance amount in the decreased partner's Capital Account is credited to his Executor's Account to settle his share in the partnership. This ensures that the deceased partner's estate receives the appropriate amount and helps in closing the financial records related to the decreased partner in the partnership.
Free Test
Community Answer
Which of the following statement is true?a)Decreased partner is not gi...
The balance is transfer to executors A/c.
Explore Courses for Humanities/Arts exam

Similar Humanities/Arts Doubts

Top Courses for Humanities/Arts

Which of the following statement is true?a)Decreased partner is not given share in profit if he dies in mid of the year as he has not rendered services for the entire year.b)The amount payable to decreased partner is transferred to his Loan A/c.c)The balance amount in decreased Partner’s Capital is credited to his Executor’s A/c.d)The decreased partner’s share in profit is calculated on the basis of turnover method only.Correct answer is option 'C'. Can you explain this answer?
Question Description
Which of the following statement is true?a)Decreased partner is not given share in profit if he dies in mid of the year as he has not rendered services for the entire year.b)The amount payable to decreased partner is transferred to his Loan A/c.c)The balance amount in decreased Partner’s Capital is credited to his Executor’s A/c.d)The decreased partner’s share in profit is calculated on the basis of turnover method only.Correct answer is option 'C'. Can you explain this answer? for Humanities/Arts 2025 is part of Humanities/Arts preparation. The Question and answers have been prepared according to the Humanities/Arts exam syllabus. Information about Which of the following statement is true?a)Decreased partner is not given share in profit if he dies in mid of the year as he has not rendered services for the entire year.b)The amount payable to decreased partner is transferred to his Loan A/c.c)The balance amount in decreased Partner’s Capital is credited to his Executor’s A/c.d)The decreased partner’s share in profit is calculated on the basis of turnover method only.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Humanities/Arts 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statement is true?a)Decreased partner is not given share in profit if he dies in mid of the year as he has not rendered services for the entire year.b)The amount payable to decreased partner is transferred to his Loan A/c.c)The balance amount in decreased Partner’s Capital is credited to his Executor’s A/c.d)The decreased partner’s share in profit is calculated on the basis of turnover method only.Correct answer is option 'C'. Can you explain this answer?.
Solutions for Which of the following statement is true?a)Decreased partner is not given share in profit if he dies in mid of the year as he has not rendered services for the entire year.b)The amount payable to decreased partner is transferred to his Loan A/c.c)The balance amount in decreased Partner’s Capital is credited to his Executor’s A/c.d)The decreased partner’s share in profit is calculated on the basis of turnover method only.Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Humanities/Arts. Download more important topics, notes, lectures and mock test series for Humanities/Arts Exam by signing up for free.
Here you can find the meaning of Which of the following statement is true?a)Decreased partner is not given share in profit if he dies in mid of the year as he has not rendered services for the entire year.b)The amount payable to decreased partner is transferred to his Loan A/c.c)The balance amount in decreased Partner’s Capital is credited to his Executor’s A/c.d)The decreased partner’s share in profit is calculated on the basis of turnover method only.Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Which of the following statement is true?a)Decreased partner is not given share in profit if he dies in mid of the year as he has not rendered services for the entire year.b)The amount payable to decreased partner is transferred to his Loan A/c.c)The balance amount in decreased Partner’s Capital is credited to his Executor’s A/c.d)The decreased partner’s share in profit is calculated on the basis of turnover method only.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Which of the following statement is true?a)Decreased partner is not given share in profit if he dies in mid of the year as he has not rendered services for the entire year.b)The amount payable to decreased partner is transferred to his Loan A/c.c)The balance amount in decreased Partner’s Capital is credited to his Executor’s A/c.d)The decreased partner’s share in profit is calculated on the basis of turnover method only.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Which of the following statement is true?a)Decreased partner is not given share in profit if he dies in mid of the year as he has not rendered services for the entire year.b)The amount payable to decreased partner is transferred to his Loan A/c.c)The balance amount in decreased Partner’s Capital is credited to his Executor’s A/c.d)The decreased partner’s share in profit is calculated on the basis of turnover method only.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Which of the following statement is true?a)Decreased partner is not given share in profit if he dies in mid of the year as he has not rendered services for the entire year.b)The amount payable to decreased partner is transferred to his Loan A/c.c)The balance amount in decreased Partner’s Capital is credited to his Executor’s A/c.d)The decreased partner’s share in profit is calculated on the basis of turnover method only.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice Humanities/Arts tests.
Explore Courses for Humanities/Arts exam

Top Courses for Humanities/Arts

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev