Question

State whether the following statements are true or false :

Death of a partner is like a compulsory retirement

Answer 1

True

Explanation: Unlike retirement that can be planned, death may occur on any day. In case of death of a partner, all those adjustments that are generally made at the time of retirement are to be performed at the time of death compulsorily. Therefore, it is correct to say that death of a partner is like compulsory retirement.