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Which of the following is effect of the retirement of a partner?
- a)The combined share of remaining partners increases
- b)The combined share of remaining partners decreases
- c)The combined share of remaining partners remains same
- d)Both The combined share of remaining partners decreases and The combined share of remaining partners remains same
Correct answer is option 'A'. Can you explain this answer?
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Which of the following is effect of the retirement of a partner?a)The ...
The main effect of retirement of a partner is that the combined share of remaining partners increases.
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Which of the following is effect of the retirement of a partner?a)The ...
Effects of the retirement of a partner:
1. The combined share of remaining partners increases: When a partner retires from a partnership, their share of the partnership's assets and profits is typically distributed among the remaining partners. As a result, the combined share of the remaining partners increases. This is because the retiring partner's share is divided among a smaller number of partners, resulting in a larger proportion for each remaining partner.
2. The combined share of remaining partners decreases: In contrast to the correct option, this statement is incorrect. The retirement of a partner does not lead to a decrease in the combined share of the remaining partners. Instead, it increases as mentioned above.
3. The combined share of remaining partners remains the same: This statement is also incorrect. The retirement of a partner has a direct impact on the distribution of assets and profits within the partnership. The remaining partners will receive a larger share due to the absence of the retiring partner.
4. Both the combined share of remaining partners decreases and the combined share of remaining partners remains the same: These statements are also incorrect, as discussed above. The retirement of a partner does not result in a decrease in the combined share of the remaining partners, nor does it keep the combined share the same. It leads to an increase in the combined share of the remaining partners.
In conclusion, the correct effect of the retirement of a partner is that the combined share of the remaining partners increases. This occurs because the retiring partner's share is divided among a smaller number of partners, resulting in a larger proportion for each remaining partner.
1. The combined share of remaining partners increases: When a partner retires from a partnership, their share of the partnership's assets and profits is typically distributed among the remaining partners. As a result, the combined share of the remaining partners increases. This is because the retiring partner's share is divided among a smaller number of partners, resulting in a larger proportion for each remaining partner.
2. The combined share of remaining partners decreases: In contrast to the correct option, this statement is incorrect. The retirement of a partner does not lead to a decrease in the combined share of the remaining partners. Instead, it increases as mentioned above.
3. The combined share of remaining partners remains the same: This statement is also incorrect. The retirement of a partner has a direct impact on the distribution of assets and profits within the partnership. The remaining partners will receive a larger share due to the absence of the retiring partner.
4. Both the combined share of remaining partners decreases and the combined share of remaining partners remains the same: These statements are also incorrect, as discussed above. The retirement of a partner does not result in a decrease in the combined share of the remaining partners, nor does it keep the combined share the same. It leads to an increase in the combined share of the remaining partners.
In conclusion, the correct effect of the retirement of a partner is that the combined share of the remaining partners increases. This occurs because the retiring partner's share is divided among a smaller number of partners, resulting in a larger proportion for each remaining partner.
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Which of the following is effect of the retirement of a partner?a)The combined share of remaining partners increasesb)The combined share of remaining partners decreasesc)The combined share of remaining partners remains samed)Both The combined share of remaining partners decreases and The combined share of remaining partners remains sameCorrect answer is option 'A'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Which of the following is effect of the retirement of a partner?a)The combined share of remaining partners increasesb)The combined share of remaining partners decreasesc)The combined share of remaining partners remains samed)Both The combined share of remaining partners decreases and The combined share of remaining partners remains sameCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is effect of the retirement of a partner?a)The combined share of remaining partners increasesb)The combined share of remaining partners decreasesc)The combined share of remaining partners remains samed)Both The combined share of remaining partners decreases and The combined share of remaining partners remains sameCorrect answer is option 'A'. Can you explain this answer?.
Which of the following is effect of the retirement of a partner?a)The combined share of remaining partners increasesb)The combined share of remaining partners decreasesc)The combined share of remaining partners remains samed)Both The combined share of remaining partners decreases and The combined share of remaining partners remains sameCorrect answer is option 'A'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Which of the following is effect of the retirement of a partner?a)The combined share of remaining partners increasesb)The combined share of remaining partners decreasesc)The combined share of remaining partners remains samed)Both The combined share of remaining partners decreases and The combined share of remaining partners remains sameCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is effect of the retirement of a partner?a)The combined share of remaining partners increasesb)The combined share of remaining partners decreasesc)The combined share of remaining partners remains samed)Both The combined share of remaining partners decreases and The combined share of remaining partners remains sameCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Which of the following is effect of the retirement of a partner?a)The combined share of remaining partners increasesb)The combined share of remaining partners decreasesc)The combined share of remaining partners remains samed)Both The combined share of remaining partners decreases and The combined share of remaining partners remains sameCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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Which of the following is effect of the retirement of a partner?a)The combined share of remaining partners increasesb)The combined share of remaining partners decreasesc)The combined share of remaining partners remains samed)Both The combined share of remaining partners decreases and The combined share of remaining partners remains sameCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for Which of the following is effect of the retirement of a partner?a)The combined share of remaining partners increasesb)The combined share of remaining partners decreasesc)The combined share of remaining partners remains samed)Both The combined share of remaining partners decreases and The combined share of remaining partners remains sameCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Which of the following is effect of the retirement of a partner?a)The combined share of remaining partners increasesb)The combined share of remaining partners decreasesc)The combined share of remaining partners remains samed)Both The combined share of remaining partners decreases and The combined share of remaining partners remains sameCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Which of the following is effect of the retirement of a partner?a)The combined share of remaining partners increasesb)The combined share of remaining partners decreasesc)The combined share of remaining partners remains samed)Both The combined share of remaining partners decreases and The combined share of remaining partners remains sameCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice Commerce tests.
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