All posts by Asmit Patel - 4. page

Professional Tax Consultant and Article Writer

Calculation of New Profit sharing ratio and Gaining ratio : 1. Nothing is mentioned about the new ratio If nothing is mentioned about the new ratio, old ratio of the […]

Distinction between Sacrificing Ratio and Gaining Ratio Sacrificing Ratio and Gaining Ratio can be distinguished as follows: Basis of Distinction Sacrificing Ratio Gaining Ratio 1.                  Meaning It is the ratio […]

Calculation of New Profit sharing ratio and Gaining ratio : At the time of retirement of a partner, the remaining partners acquire some portion of the retiring partner’s share of […]

Adjustments: When a partner retires, the following accounting adjustments are necessary 1. Calculation of New profit sharing ratio and Gaining ratio 2. Revaluation of assets and liabilities 3. Transfer of […]

Meaning  of Retirement : According to section 32(1) of the Indian Partnership Act 1932, a partner may retire from the firm 1) with the consent of all the partners 2) in […]

Preparation of Revaluation Account, Capital Accounts and Balance Sheet after admission of Partner : Illustration :  Anitha and Vanitha are partners. They share profits and losses in the ratio of […]

Treatment of Goodwill: The goodwill is the result of the old partners’ efforts in the past. Therefore, at the time of admission of new partner the goodwill is to be […]

Transfer of Accumulated Reserve : Sometimes, Partners of the firm, may set aside a portion or percentage of the profit earned to meet the unexpected or unforeseen  losses arise in […]

Transfer of Undistributed Profit or Loss : Some times, the balance sheet of the partnership firm may show undistributed profits in the form of profit and loss account in the […]

Revaluation of Assets and Liabilities Revaluation is the valuation of assets and liabilities at the time of reconstitution of the partnership firm. At the time of admission of a partner, […]