Retirement of Partner

At the time of retirement of partner the amount of goodwill of retiring partner will be paid by the continuing partners in (a)   ratio.

(a)   account is prepared when amount payable to outgoing partner is paid in installments with interest.

At the of retirement of a partner Provision for bad and doubtful debts appears in in balance sheet and all Debtors become good at the time of retirement , then provision for bad & doubtful debts will be (a)   in revaluation account.

A, B and C are partners in a firm sharing profit and losses in 3:4:2 B retire from the firm. The profit on revaluation on that date was Rs. 72,000, New ratio between A and C is 5:3 Profit on revaluation will be distributed as:

What treatment is made of accumulated profits and losses on the retirement of a partner?

• Credited to all partner’s capital accounts in old ratio.

• Debited to all partner’s capital accounts in old ratio.

• Credited to remaining partner’s capital accounts in new ratio.

• Credited to remaining partner’s capital accounts in gaining ratio.

A partner can retire from the firm with the consent of all other partners only

• true

• false

The amount due to the retiring partner is always settled in cash

• true

• false

The gain or loss shown by the revaluation account at the time of retirement of a partner is transferred to the capital account of all the partners in their (a)   ratio.

At the time of retirement, undistributed profits, losses and reserves are distributed among all the partners in their (a)   profit sharing ratio.