Retirement or Death of a Partner Q&A

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on March 12, 2023

1. Describe the procedure to be followed at the time of a partners retirement.

2. What types of matters need to be decided when a partner retires?

3. How is the amount due to the retiring partner calculated?

4. What journal entry for the transfer of general reserves should be passed at the time of a partners retirement?

5. What is the gaining ratio?

6. How is the gaining ratio calculated?

7. What is the surrender value?

8. On the retirement of a partner, how is the value of goodwill determined?

9. At the time of retirement, who pays the bonus?

10. When is the goodwill method used to determine value of goodwill?

Retirement or Death of a Partner Q&A FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.