AP Inter 2nd Year Accountancy Notes Chapter 7 Retirement / Death of a Partner

Students can go through AP Inter 2nd Year Accountancy Notes 7th Lesson Retirement / Death of a Partner will help students in revising the entire concepts quickly.

AP Inter 2nd Year Accountancy Notes 7th Lesson Retirement / Death of a Partner

→ A partner who opts to retire from an existing partnership firm is called retirement of a partner.

→ New profit sharing ratio is the ratio in which the remaining partners will share future profits after the retirement or death of a partner.

→ Gaining ratio in Which the continuing partners have acquired the share from retiring / deceased partner.

→ After retirement or death, the value of assets and liabilities are revalued. The reserves and accumulated profits are distributed.

AP Inter 2nd Year Accountancy Notes Chapter 7 Retirement / Death of a Partner

→ If goodwill already appears it will be written off by debiting partners capital accounts.

→ After retirement or death, the remaining partners may decide to keep their capital contributions is their profit sharing ratio.

→ Retiring partner / deceased partner may be paid in lumpsum or instalments with interest.

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