Retirement math

Assertion (A): At the time of retirement of a partner, if the retiring partner is paid more amount than due to him, the difference amount is goodwill paid based on valuation.

• July 2, 2023

Assertion (A): Amount due to the retiring partner is always transferred to his loan account.

• July 2, 2023

Assertion (A): At the time of retirement of a partner, assets are revalued and liabilities are reassessed to ensure that the retiring partner is neither at an advantage nor at loss due to change in values of assets and liabilities.

• July 2, 2023

Assertion (A): At the time of retirement of a partner, the combined profit share of the remaining or continuing partners increases.

• July 2, 2023

Assertion (A): At the time of retirement of a partner, besides the Retiring partner, if a continuing partner also sacrifices his profit share, he along with the retiring partner will get share in firm’s goodwill equal to the profit share sacrificed.

• July 2, 2023

Assertion (A): Retiring partner will not get share in firm’s goodwill on his retirement from the firm.

• July 2, 2023

Assertion (A): Retiring partner will get his share in firm’s gain (profit) on revaluation of assets and reassessment of liabilities and will bear loss on revaluation.

• July 2, 2023

Assertion (A): Retirement of partner means partnership comes to an end and new partnership becomes operative.

• July 2, 2023