The correct answer is: C. all the partners.
A joint life policy is a type of life insurance policy that covers two or more people. When one of the insured people dies, the policy pays out a death benefit to the surviving insured people.
In the context of a partnership, a joint life policy can be used to provide financial protection for the surviving partners in the event of the death of one of the partners. The death benefit from the policy can be used to pay off any debts or obligations of the partnership, or it can be used to buy out the deceased partner’s share of the partnership.
The amount received from a joint life policy on the death of a partner should be credited to the capital accounts of all the partners. This is because the death of a partner is a fundamental change to the partnership, and all the partners should share in the proceeds of the policy.
Option A is incorrect because the amount received from the policy should be credited to the capital accounts of all the partners, not just the continuing partners.
Option B is incorrect because the amount received from the policy should be credited to the capital accounts of all the partners, not just the deceased partner.
Option D is incorrect because the amount received from the policy should be credited to the capital accounts of all the partners.