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Amount payable to a retiring partner is calculated as
AOnly capital balance (typical) (typical) (typical) (typical)
BCapital + share in goodwill + share in reserves and profits − drawings/loss
COnly goodwill (typical) (typical) (typical) (typical) (typical)
DTwice the capital (typical) (typical) (typical) (typical) (typical)
Answer & Solution
Correct answer: B. Capital + share in goodwill + share in reserves and profits − drawings/loss
1. The retiring partner is entitled to: capital balance, share in goodwill, share in accumulated profits/reserves, share in revaluation gain, less drawings and revaluation loss.
2. All these items are credited or debited to his capital account.
3. The balance of capital A/c after these adjustments is the amount payable.
4. Hence (B) is correct.
_Source: Maharashtra Balbharati Std XII Book-Keeping & Accountancy, Ch 4 "Reconstitution of Partnership (Retirement of Partner)", §4.2 ¶§4.2_