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Q1 What are the different ways in which a partner can retire from the firm?
Ans: The following are the different ways in which a partner can retire from a firm.
(i) With the consent of all other partners: A partner must take the consent of all the co-partners of the firm before his/her retirement. Thereafter, the partner can retire from the firm if and only if all the partners agree on the decision of his/her retirement.
(ii) With an express agreement by all the partners: In case of written agreement among the partners a partner may retire from the firm by expressing his/her intention of leaving the firm though a notice to the other partners of the firm.
(iii) By giving a written notice: If partnership among the partners is at will then a partner may retire by giving notice in writing to all the other partners informing them about his/her intention to retire.
Q2 Write the various matters that need adjustments at the time of retirement of partner/partners.
Ans: The following are the various matters that need to be adjusted at the time of retirement of partners/partner.
1. Calculation of new gaining ratio of all the remaining partners of the firm.
2. Calculation of new ratio of the remaining partners of the firm.
3. Calculation of goodwill of the new firm and its accounting treatment.
4. Revaluation of assets and liabilities of the new firm.
5. Distribution of accumulated profits and losses and reserves among all the partners (including the retiring partner).
6. Treatment of Joint Life Policy
7. Settlement of the amount due to the retiring partner
8. Adjustment of capital accounts of the remaining partners in their new profit sharing ratio.
Reconstitution of a Partnership Firm - Retirement/Death of a Partner Question Answers: NCERT Class 12 Accountancy
Welcome to the Chapter 4 - Reconstitution of a Partnership Firm - Retirement/Death of a Partner, Class 12 Accountancy - NCERT Solutions page. Here, we provide detailed question answers for Chapter 4 - Reconstitution of a Partnership Firm - Retirement/Death of a Partner.The page is designed to help students gain a thorough understanding of the concepts related to natural resources, their classification, and sustainable development.
Our solutions explain each answer in a simple and comprehensive way, making it easier for students to grasp key topics and excel in their exams. By going through these Reconstitution of a Partnership Firm - Retirement/Death of a Partner question answers, you can strengthen your foundation and improve your performance in Class 12 Accountancy. Whether you're revising or preparing for tests, this chapter-wise guide will serve as an invaluable resource.
Ascertaining the amount due to Retiring / Deceased partner, New profit Sharing Ratio, Gaining Ratio,Treatment of Goodwill, Adjustment of Revaluation of Assets and Liabilities,Adjustment of Accumulated Profits and losses,Disposal of amount due to retiring partner,adjustment of partners capital, Death of a partner.
Exercise 1
Key Features of NCERT Class 12 Accountancy Chapter 'Reconstitution of a Partnership Firm - Retirement/Death of a Partner' question answers :
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