Book Keeping & Accountancy State whether the following statements are true or false with reasons

This statement is False.
For recording the profit or loss up to the death, the Profit and Loss suspense Account is created and operated. This is because final accounts cannot be prepared on the date of death of a partner. Till that period a separate account called Profit and Loss Suspense A/c is prepared.

This statement is True.
After the death of a partner, the entire amount due to the deceased partner is paid to the legal representative of the deceased partner as he is the only person who has the legal right to that amount.

This statement is False.
When the benefits of goodwill are given to the deceased partner, his capital account is credited and when such goodwill is written off, capital accounts of remaining partners are debited.

This statement is True.
General reserve is created out of past undistributed profit. Past profit is earned due to the efforts and hard work of all the partners including the partner who is now dead. Hence a deceased partner has right on it and therefore a deceased partner is entitled to receive his share of General reserve.

This statement is False.
A deceased partner’s contribution was there in the development of business and goodwill is the value of the business in terms of money. Hence, a deceased partner is entitled to receive goodwill from the firm.

This statement is False.
An amount due to the deceased partner is transferred to his Executor’s Account and the balance if remains in Executor’s Loan Account then appears in the Balance Sheet.

This statement is True.
A decrease in the value of assets means a loss to the business and in that case, Asset Account will be credited and Revaluation Account will be debited.

This statement is False.
The deceased partner’s share in profit up to the date of his death will be credited to his Capital A/c as he is entitled to receive it.

This statement is False.
On the death of a partner, his share in the goodwill is divided into the old profit ratio of continuing partners.

This statement is False.
Depending on the availability of sufficient cash or bank balance the total amount due to the deceased partner is paid. However, it is not at all necessary to make immediate payment to the legal heir or representative of the deceased partner.

This statement is True.
After the death of a partner, the business is not able to get any kind of services from the deceased partner and he ceases to be a partner of a firm on natural ground. Hence, we can say that the death of a partner is like a compulsory retirement.