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Q.

In case of retirement. If full or part of the amount payable to the retiring partner still remains to be paid and there is no agreement among the partners then retiring partner will get;

(i)   Interest @6% p.a. on the balance amount

(ii)  Share of profit earned proportional to his amount outstanding to total capital of the firm

(iii) Interest @9% p.a. on the balance amount

Which out of the following is correct?

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a

Have a choice to get either (i) or (ii)

b

(ii)

c

(i)

d

(iii)

answer is D.

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Detailed Solution

In case of no agreement the retiring partner will either get @ 6% p.a. interest rate on the remaining amount or share of profit earned proportionate to the amount outstanding to the total capital of the firm.

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