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:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (B), (D), (C), (A)
On the retirement or death of a partner, the accounting aspects are dealt with in this order:
(B) Ascertainment of new profit sharing ratio and gaining ratio
(D) Revaluation of assets and liabilities
(C) Adjustment of capital, if required
(A) Settlement of the amounts due to retired/deceased partner
NCERT (2026-27 edition):
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