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Question
State whether the following statements is true or false :
Death of a partner is like a compulsory retirement.
Options
True
False
Solution
True
Explanation: Unlike retirement that can be planned, death may occur on any day. In case of death of a partner, all those adjustments that are generally made at the time of retirement are to be performed at the time of death compulsorily. Therefore, it is correct to say that death of a partner is like compulsory retirement.
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RELATED QUESTIONS
Share of profit or a deceased partner till the date of his death is ____________
a. debited to profit and loss adjustment account
c. debited to profit and loss suspense account.
State whether the following statements is true or false :
On the death of a partner, his share in the goodwill is divided equally among continuing partners.
State whether the following statements is true or false :
Deceased Partner’s share in profit up to the date of his death will be debited to his capital A/c.
Select the most appropriate alternative from those given below and rewrite the statement.
If goodwill is raised to the extent of retiring partner’s share, ________ account is to be debited.
