A partner is allowed to retire from the firm ____________.

on the first date of accounting period

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on the last date of accounting period

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At any time during the course of the accounting period after giving proper notice

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None of the Above

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Solution

The correct option is D At any time during the course of the accounting period after giving proper notice
Retirement of a partner:
A partner is said to retire when other partners continue to carry on the partnership business, and that partner who retires ceases to be a partner.
There are three modes of retirement of a partner, which are as follows:
1. Any partner may retire at any time with the consent of all partners.
2. When the partnership deed expressly provides for the retirement of a partner; a partner may retire according to the terms of agreement between the partners, and
3. Where the partnership is at will, by giving notice in writing to all other partners of his intention to retire.

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Similar questions

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The retiring partner shall be paid−
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(b) his share of profit to the date of retirement, calculated on the basis of the average profit of the three preceding completed years.
(c) half the amount of the goodwill of the firm calculated at 1^1/2 times the average profit of the three preceding completed years.
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