A, B and C are partners in the firm sharing profits and loss in 5 : 3 : 2 ratio. The firm's balance sheet as on 31.3.2006 shows the reserve balance of Rs. 25,000, profit of the last year Rs. 50,000, Joint Life policy of Rs.10,00,000, fixed assets of Rs. 12,00,000. On 1^st June, C died and on the same date assets were revalued. The executor of the deceased partner will get along with the capital of C

When a partner dies, their executor is entitled to multiple payments: (1) The deceased partner's capital account balance, (2) Their proportionate share in accumulated reserves and profits (since these belong to all partners), (3) Their share in the joint life policy (which benefits partners), and (4) Their share of revaluation profits/losses. All of these amounts are calculated as of the date of death and paid to the executor.