Question

If the total Gross profit of the Financial year is
Rs.108000 and the sales ratio of pre-death and
post - death peciod is 1:1 then the gross profit trasnfered
to post Retirement coloum of profit and loss account is Rs?​

Answer 1

Explanation:

At the time of retirement of a partner, if there exist any reserve or accumulated profit in the books of the firm, they should be transferred to the old partner's capital/current accounts in the old profit sharing ratio, because these items belongs to the old partners.

In the same manner, old partner's capital/current accounts should be debited in the old ratio if any accumulated loss appears in the asset side of the balance sheet.

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