Retirement of a Partner Complete Chapter | CA Foundation Accounts | CA Foundation June 24| ICAI Exam

Description :

A Partner may retire from a firm for various reasons such as differences with other partners, better business opportunities, or old age. The retirement of a partner involves terminating the partner’s relationship, adjusting undrawn profits or accumulated losses, revaluing assets and liabilities, and increasing the combined shares of the remaining partners. Adjustments include changes to the profit‑sharing ratio, goodwill, and the partners’ capital accounts. When a partner retires, the retiring partner’s share can be absorbed by the remaining partners either in their existing ratio or a new ratio, which may alter the profit‑sharing ratio among the continuing partners while keeping the ratio among them consistent. 0:00 Intro 0:10 Retirement of Partner 3:14 Computation of Profit Sharing Ratio 20:23 Treatment of Goodwill 32:54 Rest of Topics 40:12 Journal 44:41 Revaluation Account 52:43 Retirement of Partner Assignment 2:01:25 Capital Adjustment 2:21:52 Illustration 3 2:31:59 At the Time of Retirement 2:38:09 ICAI Book Question Illustration 5