alleryStart learning →On the date of a partner's death, what is done with year-to-date net income?
ADeferred to next year
BKept in suspense
CAllocated to capital
DPaid only to estate
Answer & Solution
Correct answer: C. Allocated to capital
Accounts are closed at the date of death and income to date is allocated to the partners' capital accounts.
Keep practising Partnership Accounts
Browse all Partnership Accounts questions for CA Foundation, or explore more Accounting topics.
Related questions
In an LLP, is a partner liable for another partner's unauthorised actions?An LLP partner's liability is limited to what?Which authority registers and controls LLPs in India?What minimum capital is needed to form an LLP?What is the minimum number of members needed to start an LLP?What is the upper limit on partners in an Indian LLP?What does perpetual succession mean for an LLP?Which Act is stated not to apply to Indian LLPs?