Arrange the following steps involved in various accounting aspects of retirement/death of a partner in a sequence -

(A) Settlement of the amounts due to retired/deceased partner
(B) Ascertainment of new profit sharing ratio and gaining ratio
(C) Adjustment of capital, if required
(D) Revaluation of assets and liabilities

Choose the correct answer from the options given below:

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

The correct answer is Option (1) → (B), (D), (C), (A)

• (B) Ascertainment of new profit sharing ratio and gaining ratio: When a partner retires or dies, the remaining partners need to determine the new ratio in which they will share future profits and losses. The gaining ratio helps in calculating the share of goodwill.

• (D) Revaluation of assets and liabilities: The firm revalues its assets and liabilities to ensure that the retiring or deceased partner receives their rightful share of any appreciation or depreciation in the firm's value.

• (C) Adjustment of capital, if required: After revaluation and goodwill adjustments, partners may bring in or withdraw capital to adjust their capital accounts in proportion to the new profit-sharing ratio.

• (A) Settlement of the amounts due to retired/deceased partner: Finally, the amount due to the retiring or deceased partner is settled either in cash, by transferring it to their loan account, or to their legal representative.