Question

State the items which are debited to deceased partner’s Capital Account.

Hint:

Think “what reduces the amount payable to the estate?”—anything the partner owes (drawings) or his share in losses (revaluatioccumulated/current) goes to the \emph{debit} of the deceased partner’s Capital A/c.

Answer 1

Step 1: Identify amounts \emph{owed by the deceased to the firm.}
Any personal withdrawals (Drawings) until the date of death reduce the amount payable and are therefore debited. Interest on those drawings is also debited.
Step 2: Bring assets and liabilities to fair value.
If Revaluation A/c shows a \emph{loss}, each partner—including the deceased—is debited in the old ratio. Hence the deceased partner’s capital bears his share of revaluation loss.
Step 3: Adjust accumulated losses/fictitious assets.
Balances such as debit P& L, Deferred Revenue Expenditure, Advertisement Suspense, etc., are written off by debiting partners’ capital accounts in the old ratio, including the deceased partner.
Step 4: Record current-period loss up to the date of death.
The deceased partner’s share in business loss up to the date of death (ascertained by time/turnover method or interim accounts) is debited to his Capital A/c. (Note.) Items like Interest on Capital, Salary/Commission, Share of reserves and revaluation \emph{profit} are \emph{credited}, not debited.
Final Answer: \[ \boxed{\text{Debits: Drawings & interest; Revaluation loss; Accumulated losses; Share of current-period loss.}} \] % Quciktip