� Calculate joint life policy share and transfer to retiring partner ' s capital account
� Calculate General reserve share and transfer to retiring partner ' s capital account
� In his debit side we will transfer his drawing and interest on his drawing after this we can give his capital after above adjustment in cash form or after this his amount will deemed as loan to firm . Firm will liable to give 6 % interest to retiring partner . Make and retiring partner and calculate his total amount and give him . That is called accounting treatment of retirement of a partner .
Dead Partner ’ s executer account
This is very simple account and it is open when Firm has to pay deceased partner ’ s executors . In this account first of all we calculate payable amount then we calculate per year installment of executors then include total interest in this amount every year .
I am trying to make you understand with an example suppose firm has to pay RS 100000 to the executor of dead partner B in four installment with 10 % rate of interest . For this we divide Rs 100000 by 4 and it will Rs . 25000 every year but first year we include
1st installment Rs . 25000 + interest of Rs . 100000 X 10 % = 35000 2nd installment Rs . 25000 + interest of Rs . 75000 x 10 % = 32500
and same procedure for 3rd and 4th year . This is the easy method of given amount to executor of deceased partner