Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

Which of the following accounts are made at the time of retirement of a partner by the partnership firm?
A) Revaluation A/c
B) Realisation A/c
C) Partner's Capital A/c
D) Partner's Current A/c
E) Dissolution A/c
F) Partner's Executor A/c

Options:

A, B, C, D, F

A, C, D, F

A, B, C, D

A, C, D

Correct Answer:

A, C, D

Explanation:

The revaluation A/c is made to revalue assets and reassess liabilities. Partner's Capital A/c and Partner's Current A/c is made for the partners when capital accounts are made with the fixed capital method.
* Partner's Executor A/c is made at the time of death of a partner not at the retirement because after death of a partner, his share will transferred to his executor A/c.