The legal executer of the deceased partner is entitled for the balancing figure of the deceased partner's capital account. The balancing figure of the deceased partner's capital account is derived after posting the below mentioned items in Step 1 and Step 2.
Step 1: The following items are posted in the debit side of the deceased partner's capital account.
a) Credit balance of the deceased partner's capital account and/or current account.
b) Deceased partner’s share of profit up to the date of his/her death.
c) Deceased partner’s share of goodwill.
d) Deceased partner’s share in accumulated reserves and profit account.
e) Deceased partner’s share in gain on revaluation of assets and liabilities.
f) Deceased partner’s share of Joint Life Policy.
g) Interest on capital, if any, up to the date of the death.
h) Salary or commission, if any, up to the date of the death.
Step 2: The following items are posted in the credit side of the deceased partner's capital account.
a) Debit balance of the deceased partner's capital account and/or current account.
b) Amount withdrawn in the form of drawings up to the date of death of the partner.
c) Interest on drawings, if any, up to the date of the death.
d) Deceased partner’s share in loss on revaluation of assets and liabilities.
e) Deceased partner’s share of loss up to the date of the death.
f) Deceased partner’s share in the accumulated losses of the firm.
The legal executor is entitled for the balancing figure that is the excess of the credit side over the debit side of the deceased partner's capital account.
| Deceased Partner's Capital Account |
| Dr. | | | | | | | Cr. |
| Date | Particulars | J.F. | Amount Rs | Date | Particulars | J.F. | Amount Rs |
| | Revaluation A/c (Loss) | | | | Balance b/d | | |
| | Profit and Loss Suspense A/c (Share of loss up to the date of the death) | | | | Profit and Loss Suspense A/c (Share of profit up to the date of the death) | | |
| | | | | | Goodwill | | |
| | Accumulated Losses A/c | | | | Reserves and Profits | | |
| | Goodwill A/c (Written off) | | | | Revaluation A/c (gain) | | |
| | Partner Executor's A/c | | | | Joint Life Policy A/c | | |
| | (Balancing Figure) | | | | Interest on Capital A/c | | |
| | | | | | Salary A/c | | |
| | | | | | Commission A/c | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |