Advertisements
Advertisements
Question
State whether the following statements is true or false :
Retirement of a partner leads to dissolution of the firm unless otherwise agreed upon.
Options
True
False
Solution
True
Explanation: The above statement is true, especially where there are only two partners in a firm and one of them retires. In order to continue the partnership, the firm needs to admit a new partner. Otherwise, the firm will be dissolved.
APPEARS IN
RELATED QUESTIONS
Answer in one sentence only.
Who is a retiring partner?
Answer in one sentence only.
How would you treat General Reserve on retirement of a partner?
Answer in one sentence only.
How is amount due to a retiring partner settled?
Write the term / word / phrase which can substitute the following statement :
The method under which amount payable to the retiring partner is paid off at a time.
Answer in one Sentence :
How would you treat general reserve on death of a partner?
Answer in one Sentence :
How much amount due to the deceased partner is calculated?
Answer in one Sentence :
How is amount due to deceased partner settled?
Answer in one Sentence :
How is a debit balance of profit and loss account dealt with on death of a partner?
State whether the following statements is true or false :
An amount due to a deceased partner is transferred to his executor’s loan A/c.
State whether the following statements is true or false :
Total amount due to deceased partner is paid in cash to executor immediately after his death.
Write the various matters that need adjustments at the time of retirement of partner/partners.
In the event of death of a partner, the amount of General Reserve is transferred to Partners' Capital Accounts in their ______.
As per Section 37 of the Indian Partnership Act, 1932, interest @ ______ is payable to the retiring partner if full or part of his dues remain unpaid.
What journal entry will be recorded for the deceased partner's share in profit from the closure of the last balance sheet till the date of his death?
