Accounting

Partnership Accounts: Retirement and Death of a Partner

An integrated study of partnership reconstitution upon a partner’s exit or demise, addressing gaining ratio, asset revaluation, treatment of goodwill, and executor settlements.

Appears in: UP TGT Commerce Tracker → UP PGT Commerce Tracker →

1. Syllabus Overview & Exam Focus

In the official teacher recruitment and competitive syllabus, Partnership Accounts: Retirement and Death of a Partner is a core examination unit of Accounting. Questions test definitions, accounting/management principles, legal provisions, formulas, and real-world commercial applications.

2. Key Concepts & Essential Principles

Key exam concepts and principles for Partnership Accounts: Retirement and Death of a Partner:

Gaining Ratio Calculation: Determination of new profit-sharing ratio and gaining ratio (New Ratio minus Old Ratio) of continuing partners. Revaluation & Accumulated Reserves: Revaluation Account profit/loss allocation and distribution of general reserves among all partners in old ratio. Goodwill & Joint Life Policy: Valuation and compensation of outgoing partner’s goodwill share; accounting for Joint Life Policy (JLP) / individual policies. Settlement of Retiring Partner / Executor: Payment in lump-sum or transfer to Retiring Partner’s Loan Account / Deceased Partner's Executor Account with interest or profit share (Sec 37).

3. Self-Assessment & Study Checklist

Use this interactive checklist to verify your exam preparation status for this topic:

Read theoretical notes & conceptual summary Memorized essential definitions, formulas & accounting entries Solved minimum 20 previous years' questions (PYQ) Attempted timed self-assessment test Marked complete on main syllabus tracker