Chapter 5. Reconstitution of Partnership (Death of Partner) Answer in one sentence only.

 Book- Keeping and Accountancy

STANDARD XII

Chapter 2. Reconstitution of Partnership (Death of Partner)

 Chapter 5. Reconstitution of Partnership (Death of Partner)

Page No. in book (201)

 

Answer in one sentence only.

1.      What is gain ratio?

Ans.  The Gain Ratio is calculated when a partner quit or retire from the business, and the other continues to do the business in that company.

 

 

2.      In which ratio General Reserve is distributed on death of a partner?

Ans.  The amount of general reserve is transferred to the capital accounts of all the partners in their profit sharing ratio.

 

 

3.      To whom you distribute General Reserve on death of a partner?

Ans.  General reserve is distributed to the deceased partner's nominee the required amount of share in profits of the firm.

 

 

4.      How death of a partner is a compulsory retirement?

Ans.  When partner is died, then the partnership will be ceased with him.So,   it is considered as a compulsory retirement.

 

 

5.      To which account Profit is to be transferred upto the date of his death?

Ans.  The account opened to credit the share of profit of deceased partner, till the time of his death to his capital account is Profit and Loss Suspense Account.


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