02 Jan 2021 6:01 pm
What is the gain ratio?
The profit-sharing ratio which is acquired by the surviving or continuing partners on account of the death of any partner is called gain ratio or benefit ratio.
In which ratio General Reserve is distributed on death of a partner?
General reserve is distributed on the death of a partner in their old profit sharing ratio.
To whom you distribute General Reserve on the death of a partner?
On death of a partner general reserve is distributed among all partners in their old profit and loss ratio.
How the death of a partner is a compulsory retirement?
After the death of a partner, business is not able to get any kind of services from a deceased partner and so we can say that the death of a partner is like a compulsory retirement.
To which account Profit is to be transferred upto the date of his death?
Profit of the deceased partner, up to the date of his death, is transferred to his Legal Heir’s/Executor’s Account.