Reconstitution of Partnership - Retirement/Death of a Partner
In the NCERT Accountancy textbook for Class 12, this topic explains how the firm is reshaped when a partner retires or passes away. You study the new ratio among survivors, the gaining ratio that allocates the outgoing share, and the treatment of goodwill, revaluation profit, and undistributed reserves at the date of exit. The lesson shows settlement of the whole claim or its transfer to a loan account with interest until paid, including the share of profit earned in the intervening period for a deceased partner, ending with capitals restated for those who remain.
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