Question

A, B and C are partners with a profit and loss ration of 5:4:1. The partnership was liquidated and prior to the liquidation process

Answer 1

Explanation:

The retiring partner is entitled to his share of profits or losses in old ratio that have arisen till the date of his retirement. Such shares are dispensed to the retiring partner by debiting the Profit & Loss Suspense Account and crediting the Retiring Partner's Capital Account.