Definition of Partnership – Partnership deed – Rules applicable in the absence of Partnership deed – Necessary adjustments in accounts – Interest on Capital – Interest on Drawings – Partner’s salary or commission

Calculation of new profit-sharing ratio and sacrificing ratio - Accounting treatment of Goodwill - Accounting treatment of accumulated profit, reserves and accumulated loss - Accounting treatment of revaluation of assets and reassessment of liabilities - Adjustment of capital in new profit-sharing ratio.

Ascertaining the Amount Due to Retiring / Deceased Partner - Gaining Ratio - Treatment of Goodwill - Adjustment for Revaluation of Assets and Liabilities - Adjustment of Accumulated Profits and Losses - Disposal of Amount Due to Retiring Partner - Adjustment of Partner’s Capital

Mode of Payment - Treatment of Reserves, Accumulated Profits and Accumulated Losses in the Case of Death of a Partner Joint Life Policy: Premium Method - Surrender Value Method - Joint Life Policy Reserve Method

Dissolution of partnership. Garner v/s Murray rule - - Piecemeal Distribution, Insolvency of firm: Statement of Affairs as on date of order and Deficiency Account.