Arrange the following steps in correct sequence in case of retirement of a partner:

(A) Adjustment of Capital, if required

(B) Ascertain new profit sharing ratio and gaining ratio

(C) Distribution of Revaluation/Accumulated profits and losses

(D) Undertake revaluation of assets and liabilities

Choose the correct answer from the options given below:

(B), (D), (C), (A)

The correct answer is option 3- (B), (D), (C), (A).

The correct sequence of steps in case of retirement of a partner-

(B) Ascertain new profit sharing ratio and gaining ratio- First, we must calculate the new ratio among the remaining partners and determine the gaining ratio to compute goodwill adjustment.

(D) Undertake revaluation of assets and liabilities- Next, revalue the assets and liabilities to reflect current values.

(C) Distribution of Revaluation/Accumulated profits and losses- After revaluation, distribute any profit or loss from it and from accumulated reserves.

(A) Adjustment of Capital, if required- Finally, adjust the capital of remaining partners based on the new arrangement.