When one or more partners leaves the firm and the remaining partners continue to do the business of the firm, it is known as retirement of a partner. Due to some reasons like old age, poor health, strained relations etc., an existing partner may decide to retire from the partnership.

1. RETIREMENT OR
DEATH OF A PARTNER

5. 1. Amount of credit balance of deceased partner.
2. Amount of drawings
3. Interest on Capital
4. Interest on Drawings
5. Share of Profit
6. Share of general reserve
7. Share of Profit /Loss of Revaluation a/c
8. Share of Goodwill &J.L.P.
Calculated till
partner’s date of
death.