The correct answer is: C. remaining partner’s capital accounts in profit and loss ratio.
A joint life policy is a type of life insurance policy that covers two or more people. In the event of the death of one of the insured people, the policy pays out a death benefit to the surviving insured people.
In the event of the death of a partner, the amount of the joint life policy is credited to the remaining partners’ capital accounts in the profit and loss ratio. This means that the amount of the death benefit is divided among the remaining partners, based on their respective profit and loss ratios.
The profit and loss ratio is a formula that is used to determine how much each partner is entitled to share in the profits and losses of the partnership. The profit and loss ratio is typically based on the partners’ capital contributions, their salaries, and their share of the partnership’s profits.
In the event of the death of a partner, the remaining partners must decide how to distribute the deceased partner’s share of the partnership. The deceased partner’s share can be distributed to the deceased partner’s estate, to the deceased partner’s heirs, or to the remaining partners.
The distribution of the deceased partner’s share of the partnership is typically governed by the partnership agreement. If there is no partnership agreement, the distribution of the deceased partner’s share will be governed by the laws of the state in which the partnership is located.
Here is a brief explanation of each option:
- Option A: The amount of the joint life policy is credited to the account of the dead partner only. This option is incorrect because the amount of the joint life policy is typically credited to the remaining partners’ capital accounts in the profit and loss ratio.
- Option B: The amount of the joint life policy is credited to all the partners’ capital accounts in the profit and loss ratio. This option is incorrect because the amount of the joint life policy is typically credited to the remaining partners’ capital accounts in the profit and loss ratio.
- Option C: The amount of the joint life policy is credited to remaining partner’s capital accounts in profit and loss ratio. This option is correct because the amount of the joint life policy is typically credited to the remaining partners’ capital accounts in the profit and loss ratio.
- Option D: None of these. This option is incorrect because one of the options is correct.