Which of the following is not specifically prepared at the time of retirement of a partner from the partnership firm?
A) Capital A/c
B) Balance sheet
C) Executor A/c
D) Revaluation A/c
Answer & explanation
Correct answer: option 1
The correct answer is option 1- C only.
A) Capital A/c- This account is made to know the capital balance of partners.
B) Balance sheet- This statement is made to know the financial position of the firm.
C) Executor A/c- Executor A/c is not made at the time of retirement of a partner but it is made at the time of death of the partner to transfer the balance of the deceased partner from his capital account.
D) Revaluation A/c- Revaluation account is made to reassess the assets and liabilities of the firm at the time of both retirement and death of the partner.