+1 vote
in Class 12 by kratos

Why is it necessary to revalue assets and reassess liabilities at the time of retirement of a partner?

1 Answer

+3 votes
by kratos
 
Best answer

At the time of retirement or of a partner, assets are revalued and liabilities are reassessed so that the profit or loss arising on account of such revaluation up to the date of retirement or of a partner may be ascertained and adjusted in all partners’ capital accounts in their old profit-sharing ratio.

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