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 ________ ratio.

______ 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 _____________ 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 ________ratio.

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