Practicing Success
Identify the correct sequence to be followed at the time of Retirement of a Partner: Choose the correct answer from the options given below: |
(C), (D), (E), (A), (B) (C), (E), (D), (B), (A) (A), (B), (C), (D), (E) (C), (E), (B), (A), (D) |
(C), (E), (D), (B), (A) |
* First of all sacrificing ratio or gaining ratio are calculated at the time of retirement of a partner from a partnership firm.The gaining ratio refers to the proportion in which the continuing partners acquire the share previously held by a retiring or deceased partner. Gaining ratio is calculated by subtracting old ratio ratio from the new ratio. If it is -ve then it will be sacrifice. * Secondly, Revaluation A/c is made to revalue and reassess the assets and liabilities of the partnership firm. * After the capital account, the deceased partner capital balance is transferred to the executor account in case of death and to loan account in case of retirement. * At last the balance sheet of the partnership firm is made to know the financial position of the firm |