Retirement of a partner: A partner may retire from the partnership and he shall be paid for his capital in the partnership. At the time of retirement of a partner following procedures are followed: New profit sharing ratio is calculated for remaining partners Assets are liabilities are revalued The amount payable to the retiring partner is calculated The amount is paid to the retiring partner in different ways To discuss: The sharing of reduction in capital by remaining partners, when the amount paid to the retiring partner exceeds his capital balance

Question

Want to see the full answer?

Answer 1

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement 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, and drawings of a partner.

Chapter 12, Problem 12DQ

To determine

Concept Introduction:

Retirement of a partner: A partner may retire from the partnership and he shall be paid for his capital in the partnership. At the time of retirement of a partner following procedures are followed:

New profit sharing ratio is calculated for remaining partners

Assets are liabilities are revalued

The amount payable to the retiring partner is calculated

The amount is paid to the retiring partner in different ways

To discuss: The sharing of reduction in capital by remaining partners, when the amount paid to the retiring partner exceeds his capital balance

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Please provide problem with accounting question

Please explain the correct approach for solving this general accounting question.

The manufacturing overhead for the year would have been

Answer 2

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement 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, and drawings of a partner.

Chapter 12, Problem 12DQ

To determine

Concept Introduction:

Retirement of a partner: A partner may retire from the partnership and he shall be paid for his capital in the partnership. At the time of retirement of a partner following procedures are followed:

New profit sharing ratio is calculated for remaining partners

Assets are liabilities are revalued

The amount payable to the retiring partner is calculated

The amount is paid to the retiring partner in different ways

To discuss: The sharing of reduction in capital by remaining partners, when the amount paid to the retiring partner exceeds his capital balance

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement 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, and drawings of a partner.

Chapter 12, Problem 12DQ

To determine

Concept Introduction:

Retirement of a partner: A partner may retire from the partnership and he shall be paid for his capital in the partnership. At the time of retirement of a partner following procedures are followed:

New profit sharing ratio is calculated for remaining partners

Assets are liabilities are revalued

The amount payable to the retiring partner is calculated

The amount is paid to the retiring partner in different ways

To discuss: The sharing of reduction in capital by remaining partners, when the amount paid to the retiring partner exceeds his capital balance

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement 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, and drawings of a partner.

Chapter 12, Problem 12DQ

To determine