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How is the share of profits calculated for a deceased partner based on the previous year’s profits?
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Important Questions on Reconstitution of a Partnership Firm – Retirement/Death of a Partner
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How are reserves and accumulated losses distributed when a partner retires?
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How do the remaining partners adjust their capital contributions according to the new profit-sharing ratio after a partner retires?
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What adjustments need to be made at the time of retirement of a partner?
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What are the steps involved in calculating the capital adjustment among the remaining partners after a partner's retirement?
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How are accumulated profits or losses handled when a partner retires?
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Why is a retiring or deceased partner entitled to a share of the firm's goodwill?
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Lisa, Monika, and Nisha are partners in a firm sharing profits and losses in the ratio of 2: 2: 1. Their capital A/c stood as ₹ 50,000, ₹ 50,000, and ₹ 25,000 respectively. Monika died and the balance in the reserve on that date was ₹ 15,000. If goodwill of the firm is ₹ 30,000 and profit on revaluation is ₹ 7,050, what amount will be transferred to Monika’s Executors Account
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What are the methods of computing the share in profits in the event of the death of a partner?
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What are the journal entries required for recording the revaluation of assets and liabilities upon the retirement of a partner?
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What are the different ways in which a partner can retire from the firm?
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How is goodwill treated when a partner retires, and the remaining partners continue the business?
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What are the modes of payment to a retiring partner?
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What adjustments are necessary for the revaluation of assets and liabilities when a partner retires?
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What is the impact on the capital accounts of the remaining partners when goodwill is adjusted internally without cash payment by the retiring partner?
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Why do firms revalue assets and reassess liabilities on the retirement or death of a partner?
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What is the procedure for settling the amount due to a retiring partner in installments with interest?
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How is the amount payable to a deceased partner computed?
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What is the difference between sacrificing ratio and gaining ratio?
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How is the gaining ratio calculated when a partner retires?
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How is goodwill treated at the time of retirement or death of a partner?
