Partnership

Retirement/Death

Medium

common

In case of retirement, if full or part of the amount payable to the retiring partner still remains to be paid and there is no agreement among the partners, then the retiring partner will get:

Interest @6% p.a. on the balance amount.

Share of profit earned proportionate to his/her amount outstanding to total capital of the firm.

Interest @ 9% p.a on the balance amount.

Interest @6% p.a. on the balance amount OR such share of profits which has been earned with his/her money (i.e., based on capital ratio), at the option of the retiring partner.

✅ Correct Option: 4

Section 37 of the Indian Partnership Act gives the outgoing partner a choice: either interest at $6$ per cent per annum on the unpaid amount, or the share of profits earned with the help of his money, based on the capital ratio. The option rests with the retiring partner.

2023: 11 June Shift 3

Using the information given in the case study, calculate Deepali's amount of sacrifice or gain in Goodwill.

2025: 3 June Shift 2

Rohan, Bharti and Leela are partners. On the retirement of Rohan, the goodwill already appears in the balance sheet at Rs. 24,000. The goodwill will be written-off:

2025: 29 May Shift 2

When a partner retires in the middle of the year and his share of profit is calculated based on previous years' profit. Which of the following account is to be debited?

2025: 15 May Shift 2

The amount of interest payable at the end of fourth year will be

2026: 24 May Shift 1

Ranjana, Sadhna and Kamana are partners sharing profits in the ratio 2:3:4 Ranjana retires; Sadhna and Kamana decided to share profits in future in the ratio of 3:5. Calculate the Gaining Ratio of Sadhna and Kamana.

2026: 11 May Shift 1

The sum due to the retiring partner in case of retirement and to the legal representatives/ executors in case of death includes:

A. His share of goodwill

B. Credit balance of his current account

C. Salary/commission, if any

D. Provision for doubtful debts

Choose the correct answer from the options given below:

In case of retirement, if full or part of the amount payable to the retiring partner still remains to be paid and there is no agreement among the partners, then the retiring partner will get:

Solution

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