Steps involved in accounting treatment at the time of death/retirement of a partner -
(A) Adjustment of capital, if required
(B) Preparation of revaluation account, if required
(C) Ascertainment of new profit sharing ratio and gaining ratio
(D) Settlement of the amounts due to retired / deceased partner
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (C), (B), (A), (D)
On the retirement or death of a partner, the accounting steps given here come in this order:
(C) Ascertainment of new profit sharing ratio and gaining ratio
(B) Preparation of revaluation account, if required
(A) Adjustment of capital, if required
(D) Settlement of the amounts due to retired / deceased partner
NCERT (2026-27 edition):
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