How to prepare executor loan account
1. When the partner dies, the amount payable to him is paid to his/her legal representatives.
2. The representatives of deceased partner is entitled to the followings:
(a) The amount standing to the credit to the capital account and the deceased partner.
(b) Interest on capital, if provided in the partnership deed, upto the date of death:
(c) share of the value of goodwill of the firm; ‘
(d) share of undistributed profit or reserves;
(e) share of profit on the revaluation of assets and liabilities;
(f) share of profit upto the date of death;
(g) share of Joint Life Policy.
The following amounts are debited to the account of the deceased partner’s legal representatives:
(ii) Interest on drawings
(iii) share of loss on the revaluation of assets and liabilities;
(iv) share of loss that have occurred till the date of his/her deathThanks (0)