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Partnership Capital Adjustment and Retirement/Death
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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 ______________ .
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A
all partners including the deceased partner in their profit-sharing ratio
💡 Explanation:
When a partner dies, the accumulated profits in the Profit and Loss Account belong to all partners based on their profit-sharing ratio, as it was earned during their tenure.