Class 12 Accountancy Part 1 Chapter 4 Reconstitution of a Partnership Firm –Retirement/Death of a Partner

What is Retirement of a Partner?

A partner may ascertain to either withdraw or retire from the enterprise due to certain reasons such as his bad health, his age, change in enterprise’s nature of a business, etc., In the Partnership at Will, a partner might retire at any time. Retirement leads to a reconstitution of an enterprise where the partners’ contribution ratio and the profit sharing ratio change. The retiring partner is given his share of capital, revaluation profit or loss and goodwill.

Let us now understand each concept of Reconstitution of a Partnership Firm –Retirement/Death of a Partner in detail:

The above mentioned is the concept that is explained in detail about the Reconstitution of a Partnership Firm – Retirement/Death of a Partner for the class 12 Commerce students. To know more, stay tuned to BYJU’S.

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