Question : On the partner's passing, The remaining partner(s) who have benefited from the altered profit-sharing ratio should compensate the -
Option 1: Remaining partners (Who have sacrificed) as well as deceased partner
Option 2: Deceased partner only
Option 3: Remaining partners only (Who have sacrificed)
Option 4: None of the above
Correct Answer: Remaining partners (Who have sacrificed) as well as deceased partner
Solution : When a partner retires or passes away, the surviving partner(s) who benefited from the change in the profit-sharing ratio shall make up the difference by making payments to both the surviving and retiring partners.
Hence the correct answer is option 1.
Question : Which of the following statements is incorrect?
Question : In the absence of any information detailing the remaining partners' acquisition of the retiring or deceased partner's share of profits. It is assumed that they'll acquire his or her shares in -
Question :
At the time of retirement of a partner, profit (gain) on revaluation will be credited to the Capital Accounts of
Question : The retiring partner receives payment for giving up a portion of the company's future revenues in favour of the remaining partners. The remaining partners provide such compensation amount in the following ways -
Accumulated losses on the retirement of a partner are
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