Accounting Treatment on Retirement/Death

(i) Distribution of Accumulated Profits, Reserves and Specific Funds:

General reserve/ Reserve Fund/ Profit & Loss A/c                  Dr.

To All Partner’s Capital A/c (including retiring/deceased partner in old ratio)

(ii) Distribution of specific funds:

Workman’s Compensation Fund /Investment Fluctuation Fund / Contingency Reserve A/c          Dr.

To All Partner’s Capital A/c (including retiring/deceased partner in old ratio)

Payment to Retiring Partner

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