Question:
What adjustments are required to be made at the time of retirement of a partner?
What adjustments are required to be made at the time of retirement of a partner?
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Retirement requires goodwill, revaluation, and capital adjustment before final settlement.
Updated On: Feb 16, 2026
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Solution and Explanation
At the time of retirement of a partner, the following adjustments are made:
Adjustment of goodwill.
Revaluation of assets and liabilities.
Distribution of reserves and accumulated profits or losses.
Adjustment of capital accounts of partners.
Settlement of the retiring partner’s dues.
Adjustment of goodwill.
Revaluation of assets and liabilities.
Distribution of reserves and accumulated profits or losses.
Adjustment of capital accounts of partners.
Settlement of the retiring partner’s dues.
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