Advertisements
Advertisements
Question
On the retirement of a partner, general reserve will be transferred to the ______.
Options
Capital account of all the partners
Revaluation account
Capital account of the continuing partners
Memorandum revaluation account
Solution
On the retirement of a partner, general reserve will be transferred to the capital account of all the partners.
APPEARS IN
RELATED QUESTIONS
A partner retires from the partnership firm on 30th June. He is liable for all the acts of the firm up to the ______.
On the retirement of a partner from a partnership firm, accumulated profits and losses are distributed to the partners on the basis of ______.
At the time of retirement of a partner, determination of gaining ratio is required ______.
A, B and C are partners sharing profits in the ratio of 2:2:1. On retirement of B, goodwill of the firm was valued as ₹ 30,000. Find the contribution of A and C to compensate B:
What is meant by the retirement of a partner?
What is the journal entry to be passed to transfer the amount due to the deceased partner to the executor of the deceased partner?
What are the ways in which the final amount due to an outgoing partner can be settled?
Dheena, Surya, and Jankai are partners sharing profits and losses in the ratio of 5:3:2. on 31.3.2018, Dheena retired. On the date of retirement, the books of the firm showed a reserve fund of ₹ 50,000. The pass journal entry to transfer the reserve fund.
Rosi, Rathi and Rani are partners of firm sharing profits and losses equally. Rathi retired from the partnership on 1.1.2018. On that date, their balance sheet showed accumulated loss of ? 45,000 on the asset side of the balance sheet. Give the journal entry to distribute the accumulated loss.
Kannan, Rahim, and John are partners in a firm sharing profits and losses in the ratio of 5:3:2. The balance sheet as of 31st December 2017 was as follows:
| Liabilities | ₹ | Assets | ₹ | |
| Capital accounts: | Buildings | 90,000 | ||
| Kannan | 1,00,000 | 2,20,000 | Machinery | 60,000 |
| Rahim | 80,000 | Debtors | 30,000 | |
| John | 40,000 | Stock | 20,000 | |
| Workmen compensation funds | 30,000 | Cash at bank | 50,000 | |
| Creditors | 20,000 | Profit and loss A/c (loss) | 20,000 | |
| 2,70,000 | 2,70,000 |
John retires on 1st January 2018, subject to the following conditions :
- To appreciate building by 10%
- Stock to be depreciated by 5%
- To provide ₹ 1,000 for bad debts
- An unrecorded liability of ₹ 8,000 has been noticed.
- The retiring partner shall be paid immediately.
Prepare revaluation account, partner’s capital account, and the balance sheet of the firm after retirement.
