Accountancy · Ch 3 — Reconstitution of a Partnership Firm — Retirement/Death of a Partner
Terms Introduced in the Chapter
Terms Introduced in the Chapter
The key terms introduced in this chapter, with a short meanin …
Retirement of a partner is the situation where a partner leaves the firm while the remaining partners continue the business; his dues have to be settled an …
The executors of a deceased partner are the persons legally responsible for handling his estate, to whom the firm pays the amount that becomes d …
Death of a partner is the event that ends his association with the firm; his share up to the date of death — capital, reserves, goodwill, interest and share of profit — is com …
The Executor's Account is the account prepared to record the total amount payable to a deceased partner's executors and its settlement, whether in one lump sum or in inst …
The gaining ratio is the ratio in which the continuing partners take over the share of profit given up by the retiring or deceased partner; it is used mainly t …