Partnership Valuation

JJH1969
JJH1969 Registered Posts: 110 Epic contributor 🐘
in General accounting discussion
Unfortunately my Dad passed away before Christmas and he was a partner in a business. In valuing his share at the date of death would you use his capital account at that date or another method using balance sheet assets or turnover?

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  • JJH1969
    JJH1969 Registered Posts: 110 Epic contributor 🐘
    I am the accountant! I have read that for probate purposes it is just the capital account of the partner but wasn't sure if this was correct?
  • MindTheGAAP
    MindTheGAAP Registered Posts: 17
    Is there a partnership agreement in place with a clause regarding the death of a partner?
    MAAT AATQB
  • TreadStone
    TreadStone Registered Posts: 280 Epic contributor 🐘
    I'm sorry to hear of your loss.

    As above, there are a few ways of working out a valuation. This will depend on the type and size of the business.
  • TreadStone
    TreadStone Registered Posts: 280 Epic contributor 🐘
    Was there a partnership agreement ? This may well be a good starting point as it may state any mechanisms in place to value each partner's share.
  • JJH1969
    JJH1969 Registered Posts: 110 Epic contributor 🐘
    No no partnership agreement in place but I have found it in Tolleys tax guide and it is the capital account at date of death - thanks anyway

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