02 Jan 2021 5:57 pm
Deceased partner’s executor’s account is shown on the Liabilities side of the Balance Sheet.
On the death of a partner, a ratio in which the continuing partners get more share of profits in the future is called as Gain ratio.
Deceased partner’s share of profit up to the death is shown on assets side of the Balance Sheet.
Benefit ratio = New Ratio Old ratio
When Goodwill is raised at its full value and it is written off Goodwill account is to be credited.