Practicing Success
At the time of retirement of a partner the remaining partners should compensate the........ |
Remaining partners only Retiring partners only Retiring partners as well as remaining partners who have sacrificed Sacrificing partners only |
Retiring partners as well as remaining partners who have sacrificed |
It may also happen that as a result of decision on the new profit sharing ratio among the remaining partners, a continuing partner may also sacrifice a part of his share in future profits. In such a situation his capital account will also be credited along with the retiring/deceased partner’s capital account in proportion to his sacrifice and the other continuing partners’ capital accounts will be debited based on their gain in the future profit ratio. |