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Why is it necessary to revalue assets and reassess liabilities at the time of retirement of a partner? |
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Answer» At the time of retirement or death of a partner, assets are revalued and liabilities are reassessed so that the profit or loss arising on account of such revaluation up to the date of retirement or death of a partner may be ascertained and adjusted in all partners’ capital accounts in their old profit-sharing ratio. |
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