What is meant by ‘Gaining Ratio’ on retirement of a partner ?

Q: When a partner withdraws from a partnership and the value of the assets paid to the partner by the…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: If total contributed capital is equal to total agreed capital with the new partner's investment is…

A: Partnership characteristics includes: Sharing of profits and losses Mutual agency Unlimited…

Q: On retirement/death of a partner, the remaining partner(s) who have gaineddue to change in profit…

A: Partnership: An accumulation of two or more parties with the objective of sharing profit as well as…

Q: What causes the after-tax IRR (ATIRRe) for the general partner to differ from that of the limited…

A: Introduction: ATIRR referred as After-tax Cash Flows from Operations and Reversion. This return for…

Q: Why would a partner receive a salary from a partnership?  What is a disadvantage of receiving a…

A: Partnership is the association of two or more individuals who come together to contribute assets,…

Q: How much was the bonus debited or credited in partner Bruce’s capital account? *

A: Under the bonus method for the admission of a partner into a partnership firm, the investment made…

Q: What is a key distinction in the presentation of the Income Statement in a Partnership

A: Income statement shows the net income or net loss that is calculated by deducting the expenses from…

Q: Which of the following methods are used to calculate the estimated profit up to the date of death of…

A: When a partner dies in partnership firm , his heirs are entitled to the amount due and the rights…

Q: Which of the following, if unpaid, is to be accrued? O Cash dividends O Service-type warranties O…

A: Solution: "Bonus to employees and partners of a partnership" is to accrued if unpaid.

Q: How would you advise the partners in developing a method for dividing income?

A: Partnership:   Partnership is firm where two or more persons come together to business to share the…

Q: The percentage of ownership of interest of the partners is always the same as their profit sharing…

A: SOLUTION PARTNERSHIP EQUITY IS THE PERCENTAGE INTEREST THAT A PARTNER HAD IN PARTNERSHIP ASSETS .…

Q: Which of the following statement is valid in relation to sacrifice ratio? It is prepared at the time…

A: The sacrifice ratio is the ratio in which old partners sacrifice their share of profits to the new…

Q: In what ways a partner can retire from a firm?

A: A partner can retire from a firm by 1. With the consent of all partners 2. As per terms of…

Q: How should losses in a partnership be divided between the capitalist partners? The ranking should…

A: Partnership is an agreement between persons, who invest their money, run business and then share…

Q: What are the different ways in which a partner can retire from the firm.

A: Partner is a person who is in partnership with a view to do business together. Group of partners is…

Q: Which of the following is true about the partnership's allocation of loss?

A: As per our protocol we provide solution to the one question only but as you have asked two questions…

Q: What are the different methods of dividing profits or losses to partners?

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: 2. What is the profit and loss ratio of all the partners after Derek's admission?

A: Calculation of profit sharing ratio on admission of new partner in partnership firm

Q: profit in the absence of a partnership agreement?

A: In absence of partnership agreement the thumb rule is that any profit or losses should be divided…

Q: Where in the Current Account would the Share of Loss be found? A. Debit side B. Credit side C. Not…

A: In partnership accounting, we prepare the partner's capital account by two methods. The first is the…

Q: source of payment to Partner

A: Option A is wrong because partners' assets are the personal property of the partners and they are…

Q: A partner's interest in a partnership is decreased by

A: Partner's basis in partnership interest means the basis of the contributed property by a partner.…

Q: When a partner withdraws from a partnership, why is the final distribution often based on the…

A: Definition:   Partnership: This is the form of business entity that is formed by an agreement,…

Q: a loss. Salary and interest allowances are reported in the statem performance as salaries and…

A: The partnership firm will be formed by the two individual partners at least with their consent. The…

Q: e closing balance of the current account of a partner?

A: The item (i) will make an unfavorable effect on the closing balance of the current account of a…

Q: What is hidden goodwill? How is it adjusted on the admission of a partner?

A: Hidden Goodwill means the value of goodwill that is not specified at the time of admission of a…

Q: The ratio that is calculated at the time of admission of a new partner is: Admission ratio Gaining…

A: Partnership is an agreement between two or more persons in which they invest capital, run business…

Q: What provisions in a partnership agreement can be used to establish an equitable allocation of…

A: Partnership: A partnership is an unincorporated form of business which is formed by an agreement,…

Q: If a bonus is traceable to the old partners rather than to a new partner, it is allocated among the…

A: If a Bonus is traceable to the old partners rather than to a new partner, than such an bonus will be…

Q: How can a partner retire from the firm?

A: Partnership: It is an agreement where two or more persons agree to the conditions specified in the…

Q: how would the increase in liabilities of other partners assumed would contribute to the partner's…

A: Partner interest in the partnership business is the percentage which a partner owns in the…

Q: Accumulated Reserve on admission of a partner can be divided using? O a. New Profit Sharing Ratio b.…

A: In a partnership, two or more parties agree to operate and manage a business and share the profits…

Q: Which of the following adjustments are NOT to be done at the time of retirement of a partner?

A: Partnership is the business owned and controlled by one or more partners for sharing the profits and…

Q: In admitting new partners, assets contributed by partners are recorded at their replacement value.…

A: Partnership is an agreement between two or more than two persons, in which they invest capital, run…

Q: What valuation should be recorded for noncash assets transferred to a partnership by one of the…

A: Partnership is the combination of two or more persons to do some business for earning profit. At the…

Q: If a partner who retired from the partnership receives less than the capital balance before…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: Why might a partnership pay a bonus to a newly admitted partner?

A: Partnership: A partnership is a firm structure whereby multiple people own the firm together. These…

Q: The profit and loss from revaluation on retirement of partner is shared by? O a. All the partners O…

A: Partnership means where two or more person comes together to do some common business activity and…

Q: What are some of the advantages and disadvantages of forming a partnership?

A: Partnership is defined as an arrangement, which is between the two or more people for overseeing the…

Q: Gaining ratio is computed on: O a. Admission of a partner O b. Retirement of a partner O c.…

A: Introduction: Partnership: Its an agreement between two or more partners for forming a business and…

Q: If a partner who retired from the partnership receives less than the capital balance before…

A: Revaluation/impairment of asset need to be done ,so fair settlement take place.

Q: Discuss the rule as to the share of profits and losses of the partners among themselves.

A: A partnership is one of the forms of doing the business where two or more people conduct the…

Q: When a partner sells an ownership interest in a partnership, what rights are conveyed to the new…

A: Partnership: A partnership is an unincorporated form of business which is formed by an agreement,…

Q: O When a partner withdraws, the

A: Correct Answer :- C When a partner withdraw, the company books must be closed and a new set of…

Partnership Accounting

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc. 

Partner Admission and Withdrawal

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.