Partnership

Retirement/Death

Easy

Comprehension:

Answer the questions from based on following paragraph

Preeti, Kabir and Shershah are partners in a firm. Kabir retires from the firm. On his date of retirement, Rs. 1,00,000 became due to him. Preeti and Shershah promised to pay him in four yearly equal installments plus interest @ 12% p.a. on the unpaid balance every year at the end of the year, to which he agreed.

Gaining ratio among remaining partners Preeti and Shershah is

1:2

1:1

2:1

3:2

✅ Correct Option: 2

In the absence of any specific information about the profit sharing ratios or any agreement regarding how Kabir's share will be distributed between the remaining partners, it is assumed that the remaining partners gain equally.

When a partner retires and no information is provided about:

Old profit sharing ratio
New profit sharing ratio
Agreement about distribution of retiring partner's share

The remaining partners acquire the retiring partner's share in equal proportion.

Therefore, Preeti and Shershah will gain Kabir's share equally.

Gaining Ratio = 1:1

This means both Preeti and Shershah benefit equally from Kabir's retirement and will bear the obligations (like goodwill adjustment, if any) equally as well.

2026: 23 May Shift 2

X, Y and Z are partners sharing the profits in the ratio of 6:3:1. Y retires from the firm and his share is taken up by X and Z in the ratio of 3:2. The new profit sharing ratio of X and Z will be

2025: 4 June Shift 2

In the event of retirement of partner, following deduction has to be made from his/her share.:

2023: 11 June Shift 3

From the above information, calculate share of Deepali's sacrifice or gain :

2026: 29 May Shift 1

Mita, Gita and Sita are partners in a firm sharing profits in the ratio of 1:2:3. Gita retired and the value of the goodwill of the firm is valued at Rs. 60,000. Mita and Sita continue the business sharing profits in the ratio of 1:3. What will be the journal entry for adjustment of goodwill ?

2025: 3 June Shift 2

On the death of a partner, the deceased partner's capital account will not be credited with :-

2025: 27 May Shift 2

In case, deceased partner's share of profit is calculated during the intervening period, the following Journal Entry will be passed :-

Gaining ratio among remaining partners Preeti and Shershah is

Solution

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