Question

A m and j are partners in a firm . M retires from the firm .On the date of retirement rs 60000 become due to him a and j promise to pay him in installments every year at the end of the year. Prepare m s loan a/c

Answer 1

A partner can retire from the firm in three different ways. They are as follow (i) Retirement Through Mutual Consent A partnership firm take its shape through mutual consent of partners in the same way. A partner may retire if all the partners agree on the decision of his/her retirement.