diff --git a/doc/fixes34.4 b/doc/fixes34.4
index 07e14ca59..18e408055 100644
--- a/doc/fixes34.4
+++ b/doc/fixes34.4
@@ -330,6 +330,9 @@ if hero or monster standing on opened drawbridge survives its destruction,
 	fall into water or lava instead of remaining on top
 don't give a speed change message when an immobile monster is seen to be hit
 	by a wand of speed or slow monster
+when shopkeeper "gratefully inherits possessions" of hero who dies in shop
+	doorway without owing the shop, move those items inside shop for bones
+dying in a shop while wielding two weapons could cause "Setworn: mask" warning
 
 
 Platform- and/or Interface-Specific Fixes
diff --git a/include/extern.h b/include/extern.h
index f83c83e2b..fd80d6d69 100644
--- a/include/extern.h
+++ b/include/extern.h
@@ -122,6 +122,7 @@ E void NDECL(drag_down);
 
 /* ### bones.c ### */
 
+E void FDECL(drop_upon_death, (struct monst *,struct obj *,int,int));
 E boolean NDECL(can_make_bones);
 E void FDECL(savebones, (struct obj *));
 E int NDECL(getbones);
diff --git a/src/bones.c b/src/bones.c
index 7573a7aab..c27346f04 100644
--- a/src/bones.c
+++ b/src/bones.c
@@ -1,4 +1,4 @@
-/*	SCCS Id: @(#)bones.c	3.5	2006/04/14	*/
+/*	SCCS Id: @(#)bones.c	3.5	2007/03/01	*/
 /* Copyright (c) Stichting Mathematisch Centrum, Amsterdam, 1985,1993. */
 /* NetHack may be freely redistributed.  See license for details. */
 
@@ -13,7 +13,6 @@ extern long bytes_counted;
 STATIC_DCL boolean FDECL(no_bones_level, (d_level *));
 STATIC_DCL void FDECL(goodfruit, (int));
 STATIC_DCL void FDECL(resetobjs,(struct obj *,BOOLEAN_P));
-STATIC_DCL void FDECL(drop_upon_death, (struct monst *, struct obj *));
 
 STATIC_OVL boolean
 no_bones_level(lev)
@@ -164,14 +163,16 @@ boolean restore;
 	}
 }
 
-STATIC_OVL void
-drop_upon_death(mtmp, cont)
+/* called by savebones(); also by finish_paybill(shk.c) */
+void
+drop_upon_death(mtmp, cont, x, y)
 struct monst *mtmp;
 struct obj *cont;
+int x, y;
 {
 	struct obj *otmp;
 
-	uswapwep = 0; /* ensure curse() won't cause swapwep to drop twice */
+	u.twoweap = 0; /* ensure curse() won't cause swapwep to drop twice */
 	while ((otmp = invent) != 0) {
 		obj_extract_self(otmp);
 		obj_no_longer_held(otmp);
@@ -189,14 +190,15 @@ struct obj *cont;
 		else if (cont)
 			(void) add_to_container(cont, otmp);
 		else
-			place_object(otmp, u.ux, u.uy);
+			place_object(otmp, x, y);
 	}
 #ifndef GOLDOBJ
 	if(u.ugold) {
 		long ugold = u.ugold;
+
 		if (mtmp) mtmp->mgold = ugold;
 		else if (cont) (void) add_to_container(cont, mkgoldobj(ugold));
-		else (void)mkgold(ugold, u.ux, u.uy);
+		else (void)mkgold(ugold, x, y);
 		u.ugold = ugold;	/* undo mkgoldobj()'s removal */
 	}
 #endif
@@ -299,12 +301,12 @@ struct obj *corpse;
 		otmp = mk_named_object(STATUE, &mons[u.umonnum],
 				       u.ux, u.uy, plname);
 
-		drop_upon_death((struct monst *)0, otmp);
+		drop_upon_death((struct monst *)0, otmp, u.ux, u.uy);
 		if (!otmp) return;	/* couldn't make statue */
 		mtmp = (struct monst *)0;
 	} else if (u.ugrave_arise < LOW_PM) {
 		/* drop everything */
-		drop_upon_death((struct monst *)0, (struct obj *)0);
+		drop_upon_death((struct monst *)0, (struct obj *)0, u.ux, u.uy);
 		/* trick makemon() into allowing monster creation
 		 * on your location
 		 */
@@ -321,7 +323,8 @@ struct obj *corpse;
 		mtmp = makemon(&mons[u.ugrave_arise], u.ux, u.uy, NO_MM_FLAGS);
 		in_mklev = FALSE;
 		if (!mtmp) {
-			drop_upon_death((struct monst *)0, (struct obj *)0);
+			drop_upon_death((struct monst *)0, (struct obj *)0,
+					u.ux, u.uy);
 			return;
 		}
 		mtmp = christen_monst(mtmp, plname);
@@ -332,7 +335,7 @@ struct obj *corpse;
 		    Your("body rises from the dead as %s...",
 			 an(mons[u.ugrave_arise].mname));
 		display_nhwindow(WIN_MESSAGE, FALSE);
-		drop_upon_death(mtmp, (struct obj *)0);
+		drop_upon_death(mtmp, (struct obj *)0, u.ux, u.uy);
 		m_dowear(mtmp, TRUE);
 	}
 	if (mtmp) {
diff --git a/src/shk.c b/src/shk.c
index a6dfbea00..07a9c2e75 100644
--- a/src/shk.c
+++ b/src/shk.c
@@ -1,4 +1,4 @@
-/*	SCCS Id: @(#)shk.c	3.5	2006/10/30	*/
+/*	SCCS Id: @(#)shk.c	3.5	2007/03/01	*/
 /* Copyright (c) Stichting Mathematisch Centrum, Amsterdam, 1985. */
 /* NetHack may be freely redistributed.  See license for details. */
 
@@ -57,7 +57,7 @@ STATIC_DCL void FDECL(shk_names_obj,
 		 (struct monst *,struct obj *,const char *,long,const char *));
 STATIC_DCL struct obj *FDECL(bp_to_obj, (struct bill_x *));
 STATIC_DCL boolean FDECL(inherits, (struct monst *,int,int));
-STATIC_DCL void FDECL(set_repo_loc, (struct eshk *));
+STATIC_DCL void FDECL(set_repo_loc, (struct monst *));
 STATIC_DCL boolean NDECL(angry_shk_exists);
 STATIC_DCL void FDECL(rile_shk, (struct monst *));
 STATIC_DCL void FDECL(rouse_shk, (struct monst *,BOOLEAN_P));
@@ -1549,7 +1549,10 @@ boolean itemize;
 	return buy;
 }
 
-static coord repo_location;	/* repossession context */
+static struct repo {	/* repossession context */
+    struct monst *shopkeeper;
+    coord location;
+} repo;
 
 /* routine called after dying (or quitting) */
 boolean
@@ -1564,9 +1567,13 @@ int croaked;	/* -1: escaped dungeon; 0: quit; 1: died */
 	   shops don't occur on level 1, but this could happen if hero
 	   level teleports out of the dungeon and manages not to die */
 	if (croaked < 0) return FALSE;
+	/* [should probably also return false when dead hero has been
+	    petrified since shk shouldn't be able to grab inventory
+	    which has been shut inside a statue] */
 
 	/* this is where inventory will end up if any shk takes it */
-	repo_location.x = repo_location.y = 0;
+	repo.location.x = repo.location.y = 0;
+	repo.shopkeeper = 0;
 
 	/* give shopkeeper first crack */
 	if ((mtmp = shop_keeper(*u.ushops)) && inhishop(mtmp)) {
@@ -1631,10 +1638,11 @@ int croaked;
 	if(roomno == eshkp->shoproom && inhishop(shkp) &&
 	    !eshkp->billct && !eshkp->robbed && !eshkp->debit &&
 	     NOTANGRY(shkp) && !eshkp->following) {
-		if (invent)
+		taken = (invent != 0);
+		if (taken)
 			pline("%s gratefully inherits all your possessions.",
 				shkname(shkp));
-		set_repo_loc(eshkp);
+		set_repo_loc(shkp);
 		goto clear;
 	}
 
@@ -1676,7 +1684,7 @@ int croaked;
 			      shkname(shkp), takes);
 			taken = TRUE;
 			/* where to put player's invent (after disclosure) */
-			set_repo_loc(eshkp);
+			set_repo_loc(shkp);
 		} else {
 #ifndef GOLDOBJ
 			shkp->mgold += loss;
@@ -1709,10 +1717,11 @@ clear:
 }
 
 STATIC_OVL void
-set_repo_loc(eshkp)
-struct eshk *eshkp;
+set_repo_loc(shkp)
+struct monst *shkp;
 {
 	register xchar ox, oy;
+	struct eshk *eshkp = ESHK(shkp);
 
 	/* if you're not in this shk's shop room, or if you're in its doorway
 	    or entry spot, then your gear gets dumped all the way inside */
@@ -1731,31 +1740,37 @@ struct eshk *eshkp;
 	    oy = u.uy;
 	}
 	/* finish_paybill will deposit invent here */
-	repo_location.x = ox;
-	repo_location.y = oy;
+	repo.location.x = ox;
+	repo.location.y = oy;
+	repo.shopkeeper = shkp;
 }
 
 /* called at game exit, after inventory disclosure but before making bones */
 void
 finish_paybill()
 {
-	register struct obj *otmp;
-	int ox = repo_location.x,
-	    oy = repo_location.y;
+	struct monst *shkp = repo.shopkeeper;
+	int ox = repo.location.x,
+	    oy = repo.location.y;
 
 #if 0		/* don't bother */
 	if (ox == 0 && oy == 0) impossible("finish_paybill: no location");
 #endif
 	/* normally done by savebones(), but that's too late in this case */
 	unleash_all();
-	/* transfer all of the character's inventory to the shop floor */
-	while ((otmp = invent) != 0) {
-	    otmp->owornmask = 0L;	/* perhaps we should call setnotworn? */
-	    otmp->lamplit = 0;		/* avoid "goes out" msg from freeinv */
-	    if (rn2(5)) curse(otmp);	/* normal bones treatment for invent */
-	    obj_extract_self(otmp);
-	    place_object(otmp, ox, oy);
+	/* if hero has any gold left, take it into shopkeeper's possession */
+	if (shkp) {
+#ifdef GOLDOBJ
+	    long umoney = money_cnt(invent);
+
+	    if (umoney) money2mon(shkp, umoney);
+#else
+	    shkp->mgold += u.ugold;
+	    u.ugold = 0L;
+#endif
 	}
+	/* transfer rest of the character's inventory to the shop floor */
+	drop_upon_death((struct monst *)0, (struct obj *)0, ox, oy);
 }
 
 /* find obj on one of the lists */