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If the firm gets dissolved due to retirement of one the partners, then what amount of JLP will be credited in partner’s capital A/c?
  • a)
    Maturity value 
  • b)
    Surrender value 
  • c)
    Policy value 
  • d)
    None of these.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
If the firm gets dissolved due to retirement of one the partners, then...
The amount of JLP (Joint Loss Payment) that will be credited to the partner depends on the partnership agreement and the terms outlined in it. Typically, the JLP is used to settle any outstanding liabilities or losses of the partnership.

If the firm is dissolved due to the retirement of one partner, the JLP would be used to settle any remaining debts or obligations. After all liabilities are settled, any remaining JLP would be distributed among the partners according to their profit-sharing ratios or as specified in the partnership agreement.

The specific amount of JLP credited to the partner would depend on their share of the partnership profits and the amount of JLP available after settling liabilities.
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If the firm gets dissolved due to retirement of one the partners, then what amount of JLP will be credited in partner’s capital A/c?a)Maturity valueb)Surrender valuec)Policy valued)None of these.Correct answer is option 'B'. Can you explain this answer?
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