Question

what do you understand by outgoing of partner from the firm how it is determined what are various methods of paying the partner share​

Answer 1

Answer:

Outgoing partner-

An outgoing partner is a partner who leaves a partnership firm in which the remaining partners continue the business. The Partnership Law prescribes certain liabilities and rights for such a partner.

Explanation:

Share in profits-

• It states that if any member of the firm dies or ceases to be a partner of the firm, and the other partner continues to carry on the business without any final settlement of the account between them, the outgoing partner is entitled to share his profits made by the firm, because he ceased to be a partner.
• The outgoing partner or his representative is entitled to use his share of the firm's property or interest at a rate of six percent per year on the amount of the outgoing partner's share of the firm's property.
• The remaining partner may also purchase the share of the deceased or departing partner.
• If the remaining partner chooses to purchase the outgoing partner's share, the outgoing partner loses his right to profit.

Hence, an outgoing partner can be paid his share of profit as his share of the firm's property or interest at a rate of six percent per year on the amount of the outgoing partner's share of the firm's property. Also the remaining partner may  purchase the share of the deceased or departing partner.

#SPJ2