The various accounting aspects involved on retirement or death of a partner are as follows:
• Ascertainment of new profit sharing ratio and gaining ratio;
• Treatment of goodwill;
• Revaluation of assets and liabilities;
• Adjustment in respect of unrecorded assets and liabilities;
• Distribution of accumulated profits and losses;
• Ascertainment of share of profit or loss up to the date of retirement/death;
• Adjustment of capital, if required;
• Settlement of the amounts due to retired/deceased partner;