Target Exam

CUET

Subject

Accountancy Part A

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

In case of retirement of a partner, gaining ratio is calculated for

Options:

Distribution of accumulated profits

Distribution of accumulated losses

Distribution of profits on revaluation of assets

Adjustment of retiring partner’s share in goodwill

Correct Answer:

Adjustment of retiring partner’s share in goodwill

Explanation:

The correct answer is Option (4) → 

Adjustment of retiring partner’s share in goodwill