Amount due to a deceased partner up to date of death is transferred to

1. On death, the deceased's share belongs to the legal heir or executor. 2. All credits (capital, share in goodwill, reserves, profit to date) and debits (drawings) are settled into the Executor's A/c. 3. Balance is paid as agreed (lump sum or instalments with 6% interest). 4. Hence (B) is correct. _Source: Maharashtra Balbharati Std XII Book-Keeping & Accountancy, Ch 5 "Reconstitution of Partnership (Death of Partner)", §5.1 ¶§5.1_