Partnership Capital Adjustment and Retirement/Death

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Multiple Choice

On the death of a partner, credit balance of Profit and Loss Account appearing in, the Balance sheet, should be credited to the Capital Accounts of ______________ .

  1. all partners including the deceased partner in their profit-sharing ratio
  2. the remaining partners in the new profit-sharing ratio
  3. neither the deceased partner nor the remaining partners.
  4. None of these
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