Write the various matters that need adjustments at the time of retirem

1.	Write the various matters that need adjustments at the time of retirement of a partners.
Answer» The various accounting aspects involved on retirement or death of a partner are as follows: • Ascertainment of new profit sharing ratio and gaining ratio; • Treatment of goodwill; • Revaluation of assets and liabilities; • Adjustment in respect of unrecorded assets and liabilities; • Distribution of accumulated profits and losses; • Ascertainment of share of profit or loss up to the date of retirement/death; • Adjustment of capital, if required; • Settlement of the amounts due to retired/deceased partner;

Write the various matters that need adjustments at the time of retirement of a partners.

Answer»

The various accounting aspects involved on retirement or death of a partner are as follows:

• Ascertainment of new profit sharing ratio and gaining ratio;

• Treatment of goodwill;

• Revaluation of assets and liabilities;

• Adjustment in respect of unrecorded assets and liabilities;

• Distribution of accumulated profits and losses;

• Ascertainment of share of profit or loss up to the date of retirement/death;

• Adjustment of capital, if required;

• Settlement of the amounts due to retired/deceased partner;