Partnership

Retirement/Death

Medium

common

Arrange the following in the correct sequence related to adjustment of partners' capitals in case of retirement of a partner :-

(A) Calculation of cash to be brought in or withdrawn by the continuing partners

(B) Calculation of total capital of new firm

(C) Calculation of new profit sharing ratio

(D) Calculation of new capitals of the existing partners

Choose the correct answer from the options given below:

(A), (B), (C), (D)

(C), (D), (A), (B)

(B), (A), (D), (C)

✅ Correct Option: 4

First the new profit sharing ratio is fixed, then the total capital of the reconstituted firm is determined, then this total is divided in the new ratio to get each continuing partner's new capital, and finally the difference against the existing balance shows the cash to be brought in or withdrawn.

Sequence: (C), (B), (D), (A).

2025: 22 May Shift 1

In the absence of any information regarding the acquisition of share in profits of the retiring/deceased partner by the remaining partners, it is assumed that they will acquire his/her share in________.

2022: 16 July Shift 2

A, B and C are partners with profit sharing ratio of 2:1 respectively. C died on 1 oct 2021. Journal entry to be passed to give C his share of profit immediately will be:-

2026: 31 May Shift 1

Match the LIST-I with LIST-II

LIST-I		LIST-II
A.	Gaining Ratio	I.	Average Profit × 100/ Normal Rate of Return
B.	Goodwill	II.	Old Ratio - New Ratio
C.	Sacrificing Ratio	III.	Super Profit × 100/ Normal Rate of Return
D.	Capitalised Value	IV.	New Ratio - Old Ratio

Choose the correct answer from the options given below:

2023: 29 May Shift 2

A, B, and C are partners with equal profit sharing ratio. Their fixed capitals are Rs. 30,000, Rs. 25,000 and Rs. 30,000 respectively. C decided to take retirement. A and B decided to continue the partnership firm and change their profit sharing ratio into Capital Ratio. What is the gaining Ratio of A and B?

2026: 19 May Shift 1

Anil, Bhanu and Chandu were partners in a firm sharing profits in the ratio of 5:3:2. Anil died on May 1, 2025. Half of the amount due to Anil is paid immediately. Choose the correct order of the following entries/ adjustments in the books of account:

(A) Pay half of the amount due to Anil's executor.

(B) Pay remaining half of the amount due with interest to Anil's executor in the next year.

(D) Provide for interest on capital and share of profit/loss till the date of death.

Choose the correct sequence of above adjustments from the options given below:

2026: 20 May Shift 1

At the time of retirement of a partner, arrange the following accounts in the correct sequence.

(A) Partners' Current A/c

(B) Revaluation A/c

(D) Partners' Capital A/c

Choose the correct answer from the options given below:

Solution

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