ASCERTAINING THE AMOUNT DUE TO RETIRING PARTNER/DECEASED PARTNER
Answers
Answer:
Ascertaining the retiring/deceased partner is the claim against the enterprise and explain the system of its settlement; outline the retiring partner’s loan a/c, if needed; Outline the dead partner’s enforcer’s a/c in the case of death of a partner and the balance sheet of a reconstituted enterprise.
The total sum due to the retiring partner (in case of retirement) and to the legal officials/executors (in case of death) incorporates :
The credit balance of his capital a/c
The credit balance of his current a/c (if any)
Partner’s share of goodwill
His share of accrued profits or reserves
His share in the profit of revaluation of assets and liabilities
His share of gains up to the date of retirement/death
Interest on his capital, (only) if involved, up to the date of retirement/death
Commission/salary, if any, due to him until the date of retirement/death.
Explanation:
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