if the adjustments in the valve of assets at the time of retirement of a partner shows a profit it should be credited to the capital accounts of
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- At the time of retirement of a partner from partnership firm, reconstitution of partnership takes place. In this reconstitution there is revision of profit sharing ratio among partners, determination of gaining and sacrificing ratio, revaluation of assets and liabilities, adjustments for goodwill and joint life policy etc. takes place. All these adjustments takes place and finally profits or losses are distributed among old partners in old profit sharing ratio.
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At the time of retirement of a partner from partnership firm, reconstitution of partnership takes place. In this reconstitution there is revision of profit sharing ratio among partners, determination of gaining and sacrificing ratio, revaluation of assets and liabilities, adjustments for goodwill and joint life policy etc. takes place. All these adjustments takes place and finally profits or losses are distributed among old partners in old profit sharing ratio.
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