Q.List out the adjustments made at the time of retirement of a partner in a partnership firm.

Adjustments at retirement: new ratio & gaining ratio, revaluation of assets and liabilities, distribution of reserves/accumulated profits, goodwill treatment, and settlement of the retiring partner's claim.

When a partner retires from a firm, the following adjustments are made in the accounts, as covered in the Tamil Nadu HSC Class-12 Accountancy chapter on Retirement of a Partner:

1. New profit-sharing ratio and gaining ratio — determine the ratio in which the continuing partners will share future profits and the ratio in which they gain the retiring partner's share.
2. Revaluation of assets and liabilities — assets and liabilities are revalued and the resulting profit or loss is shared among all partners in the old ratio.
3. Distribution of accumulated profits, reserves and losses — undistributed reserves, general reserve, accumulated profits or losses are transferred to all partners' capital accounts in the old ratio. …