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Home Questions BMMDKX48CA
Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

The accounting treatment in the event of the death of a partner is similar to that in the case of:

Options:

Admission of a new partner

Retirement of a partner

Dissolution of the partnership firm

Change in accounting method

Correct Answer:

Retirement of a partner

Explanation:

The correct answer is option 2- Retirement of a partner.

The accounting treatment in the event of the death of a partner is similar to that in the case of Retirement of a partner.


The accounting treatment in the event of death of a partner is similar to that in case of retirement of a partner, and that in case of death of a partner his claim is transferred to his executors and settled in the same manner as that of the retired partner. However, there is one major difference that, while the retirement normally takes place at the end of an accounting period, the death of a partner may occur any time.

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