Partnership

Retirement/Death

Medium

If a partner retires in the middle of the year his/her share of profit from the date of last balance sheet till the date of retirement will be transferred to : ____

Profit & Loss A/C credit side

Profit & Loss suspense A/C debit side

Retiring partners capital A/C debit side

Profit & Loss suspense A/C credit side

✅ Correct Option: 2

When a partner retires during the year, his share of profit from the last balance sheet till retirement date is calculated and credited to his capital account. The corresponding debit goes to Profit and Loss Suspense A/c (since actual profit will be determined later).

2026: 24 May Shift 1

Vandana, Bhavna and Chandrika were partners in a firm sharing profits in the ratio of 5:3:2. Bhavna died on December 15, 2025 and Rs. 60,000 is the amount payable to her executors. 75% of amount payable is paid immediately to her executors. Pass journal entry for immediate payment being made.

2026: 11 May Shift 2

Match the LIST-I with LIST-II

LIST-I		LIST-II
A. Preparation of Profit & Loss Suspense A/c	I.	Admission of a partner
B. When firm requires additional capital or managerial help or both for the expansion of its business	II.	Change in the existing agreement
C. This happens on account of a change in the existing partners' role in the firm.	III.	Retirement of an existing partner
D. It means withdrawal by a partner from the business of the firm which may be due to his bad health, old age or change in business interests.	IV.	Death of a partner

Choose the correct answer from the options given below:

2025: 15 May Shift 2

Net Amount of installment payable at the end of 2nd year to Kabir is

2026: 12 May Shift 1

What is not included in the sum due to the retiring partner?

2025: 31 May Shift 1

On the death of an existing partner, in case the value of a Liability decreases then which account will be debited?

2026: 11 May Shift 1

The sum due to the retiring partner in case of retirement and to the legal representatives/ executors in case of death includes:

A. His share of goodwill

B. Credit balance of his current account

C. Salary/commission, if any

D. Provision for doubtful debts

Choose the correct answer from the options given below:

If a partner retires in the middle of the year his/her share of profit from the date of last balance sheet till the date of retirement will be transferred to : ____

Solution

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