Account class 12 Retirement Of A Partner

1. A partner can retire from the firm with the consent of all other partners only.

2. In the event of death the combined share of profit of the continuing partners will decrease.

3. A family member of the retiring partner will automatically become the new partner in reconstituted firm.

4. Gain or loss on revaluation of assets at the time of retirement of a partner is a capital profit.

5. In the event of death profit or loss on revaluation account is transferred to the continuing partners in the old profit sharing ratio.

6. The amount due to retiring partner, if not paid in cash, is transferred to his loan account.

7. Revaluation account is prepared at the time of ;

8. Unrecorded assets are ;

9. Balance of revaluation account in case of fixed capitals is transferred to ;

10. On the death of the partner his legal representatives are entitled to profit ;

11. Increase in liability at the time of retirement of a partner is ;

12. Decrease in the value of assets at the time of retirement of a partner is ;

13. Decrease in the value of assets at the time of retirement of a partner is ;

14. Gaining ratio is ;

15. A, B and C are partners sharing profits in the ratio 4 : 5 : 3, C retires and remaining partners decide to share profits in the ratio 7 : 8 what will be the gaining ratio ?

16. A, B and C are the partners sharing profits in the ratio 3 : 2 : 1, C retire what will be the new profit sharing ratio ?

17. A, B and C are the partners sharing profits in the ratio 3 : 2 : 1, C retires the new profit sharing ratio is 3 : 2 what will be the gaining ratio ?

18. A, B and C are the partners sharing profits in the ratio 3 : 2 : 1, C retires. If A and B purchase the share of retiring partner equally what will be the new profit sharing ratio ?

19. Claim of the retiring partner is payable in the following form ;

20. Retiring partner is compensated by continuing partners in their ;