The interest of the retiring or withdrawing partner is usually measured by his capital balance before his retirement or withdrawal adjusted by the following adjustments except a. changes in the valuation of all assets and liabilities b. profit or loss after the date of the partner’s withdrawal or retirement c. profit or loss from the operation from the last closing date of the date of his retirement or withdrawal d. errors in net income in prior years
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
The interest of the retiring or withdrawing partner is usually measured by his capital balance before his retirement or withdrawal adjusted by the following adjustments except
a. changes in the valuation of all assets and liabilities
b. profit or loss after the date of the partner’s withdrawal or retirement
c. profit or loss from the operation from the last closing date of the date of his retirement or withdrawal
d. errors in net income in prior years
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