ReViSense.AI
Chapter 99 · Part 1

Reconstitution of a Partnership Firm – Retirement/Death of a Partner

49
Concepts
15
Formulae
21 min
Read time
Intermediate

Learning objectives

  • 1Explain learning Objectives
  • 2Explain ascertaining the Amount Due to Retiring/Deceased Partner
  • 3Explain additions to Partner's Claim
  • 4Explain deductions from Partner's Claim
  • 5Explain new Profit Sharing Ratio
  • 6Explain three Scenarios

Your learning path

Introduction
Learning Objectives
2. Ascertaining the Amount Due to Retiring/Deceased Partner
Additions to Partner's Claim:
Deductions from Partner's Claim:
3. New Profit Sharing Ratio
Three Scenarios:
Scenario A: Partners Acquire Share in Old Ratio
Scenario B: Partners Acquire Share in Different Ratio
Activity
Worked Example
Summary
Quiz
Revision
Follow the full path

Key terms

TotalAmountold profit sharing ratioJournal EntryExecutor's AccountFormulaold ratioRs. 12,000Rs. 48,000Amount (Rs.)gaining ratiohidden goodwillShare of goodwillRevaluation Accountnew profit sharing ratioSteps

Connected chapters

Reconstitution of a Partnership Firm – Admission of a Partnershares: Total, old profit sharing ratio, Journal Entry, FormulaDissolution of Partnership Firmshares: Amount, Total, Journal Entry, DebitAccounting for Share Capitalshares: Journal EntryAccounting for Share Capitalshares: Journal EntryIssue and Redemption of Debenturesshares: Journal Entry
49Concepts
15Formulae
21Minutes
PreviousReconstitution of a Partnership Firm – Admission of a PartnerNextDissolution of Partnership Firm