The sum due to the retiring partner includes:
(A) His share of profits up to the date of retirement
(B) His share of goodwill
(C) His share of accumulated profits
(D) His share in the gain of revaluation of assets and liabilities
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A), (B), (C) and (D)
A retiring partner is paid everything that belongs to him in the firm up to the day he leaves: his capital and current account balances, plus his share of everything the firm has earned or gained that is not yet in his account.
(A) His share of profits up to the date of retirement Correct. His share of profits up to the date of retirement is credited to him.
(B) His share of goodwill Correct. He gets his share of goodwill, since the firm’s reputation was built partly by him.
(C) His share of accumulated profits Correct. His share of accumulated profits (reserves) is his, so it is credited to him.
(D) His share in the gain of revaluation of assets and liabilities Correct. His share in any gain on revaluation of assets and liabilities is added as well.
NCERT (2026-27 edition):
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