Assertion (A): At the time of retirement of a partner, assets are revalued and liabilities are reassessed to ensure that the retiring partner is neither at an advantage nor at loss due to change in values of assets and liabilities.
Assertion (A): At the time of retirement of a partner, assets are revalued and liabilities are reassessed to ensure that the retiring partner is neither at an advantage nor at loss due to change in values of assets and liabilities.
Reason (R): As a principle, assets and liabilities are valued at their current values and gain (profit) or loss due to the change be credited or debited to the Capital Accounts of all the partners (including retiring partner) since it is for the period before retirement.
Anurag Pathak Changed status to publish July 2, 2023
Ans – a)
Explanation:- The assets and liabilities are revalued at the current prices and net profit or loss on revaluation is either credited or debited to all the partners in the old profit-sharing ratio, ensuring no one remains in advantage or disadvantage.
Anurag Pathak Changed status to publish July 2, 2023
