Match the following in case of retirement or death of a partner.

1) d, 2) c, 3) b, 4) a

* Profit & Loss suspense A/c- Normally retirement of a partner takes place at the end of accounting period. But there can be a case where a partner decides to retire in the middle of the year. In such a case the claim shall include share of profit or loss, interest on capital, interest on drawings if any, from the date of last balance sheet to the date of retirement. Here, the main problem relates to the calculation of profit for the intervening period, i.e., the period from the date of last balance sheet and the date of retirement. The profit calculated for the intervening period is transferred to profit and loss suspense account.

* Share of deceased partner in accumulated loss- If there are accumulated losses on the retirement or death of a partner then it will be distributed between all partners in their old ratio. In case of loss partners account are debited whereas in case of profit partner's account are credited.

* Retiring partner's loan A/c- Once all adjustments, including the partner's share of goodwill, accumulated profits, losses, revaluation gains/losses, and any other relevant factors, have been made, the total amount due to the retiring partner is ascertained. If the firm is capable of making the payment immediately, the amount is paid to the retiring partner without delay. However, if the firm is unable to make the full payment immediately, the amount due is transferred to the retiring partner's Loan Account. Subsequently, as and when the firm is able to make the payments, the amounts are debited from the Loan Account and credited to the retiring partner's account accordingly. This ensures that the retiring partner eventually receives the full amount owed to them over the course of time as per the agreed terms.

* Disposal of amount- Upon the retirement of a partner, the settlement of the outgoing partner's account is governed by the terms specified in the partnership deed. These terms may include various options for the payment, such as:
Lump Sum Payment: The outgoing partner may receive the entire amount due in a single payment immediately.
Installment Payments: The payment may be spread out over multiple installments, with or without interest, as agreed upon in the partnership deed.
Partial Cash Payment and Installments: Part of the amount may be paid in cash immediately, and the remaining balance is settled through installments at agreed intervals.
If there is no specific agreement regarding the payment terms, Section 37 of the Indian Partnership Act, 1932 is applicable. According to this section, the outgoing partner has the option to choose one of the following methods of settlement:
Option 1: The outgoing partner can receive interest at a rate of 6% per annum on the amount due, calculated until the date of payment.
Option 2: Alternatively, the outgoing partner can opt to receive their share of profits earned with their money, based on the capital ratio.