Retirement and Death of a Partner: Fill In the Blanks
When a partner withdraws their capital from a partnership firm, it is referred to as the
of a partner.
A partnership is
on the retirement or death of a partner.
If the remaining partners want to continue the business, they should establish a new
The amount payable to the retiring partner is a
of the firm, which will be paid in full or in
At the time of a partner’s retirement or death, the income sharing ratio among the remaining partners
Intangible assets that are not shown on the balance sheet result in an
in the outgoing proprietorship.
The amount due to a retiring partner reduces as a consequence of
made to them.
Goodwill will be debited with the agreed value
the value already shown in the books.
Goodwill may be
if all the partners agree that it should not remain in the books.
The payment made to the retiring partner in installments is known as an
About the Author
True Tamplin, BSc, CEPF®
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True contributes to his own finance dictionary, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.