Retirement or Death of a Partner is an important chapter in the DK Goel textbook for Accountancy students. Questions 34 to 43 in this chapter are particularly challenging. Here are some solutions and explanations for these questions.

Question 34: How should the amount due to the retiring partner be calculated?

Solution: The amount due to the retiring partner should be calculated by taking into consideration the share of the partner in the profits of the firm, interest on capital, and any amount due to the partner as per the partnership agreement. The amount should be paid either in lump sum or in instalments, as per the agreement.

Question 35: What is the treatment of revaluation of assets and liabilities on retirement of a partner?

Solution: Revaluation of assets and liabilities is done to determine the net worth of the firm. If there is an increase in the value of assets or decrease in the value of liabilities, the retiring partner is entitled to a share in the profit. If there is a decrease in the value of assets or increase in the value of liabilities, the retiring partner is liable to bear a share of the loss.

Question 36: How is the amount due to the deceased partner calculated?

Solution: In case of the death of a partner, the amount due to the deceased partner is calculated by taking into consideration the share of the partner in the profits of the firm till the date of death, interest on capital, and any amount due to the partner as per the partnership agreement. The amount should be paid to the legal heirs of the deceased partner.

Question 37: What is meant by goodwill? How is it calculated on retirement or death of a partner?

Solution: Goodwill is the value of the reputation and popularity of a business. It is calculated by taking the average profits of the last few years and multiplying it by a certain factor. On retirement or death of a partner, the share of goodwill is calculated based on the partnership agreement.

Question 38: How is the share of profit of a retiring partner calculated?

Solution: The share of profit of a retiring partner is calculated based on the partnership agreement. It includes the share of the partner in the profits of the firm till the date of retirement, interest on capital, and any amount due to the partner as per the partnership agreement.

Question 39: How is the share of profit of a deceased partner calculated?

Solution: The share of profit of a deceased partner is calculated based on the partnership agreement. It includes the share of the partner in the profits of the firm till the date of death, interest on capital, and any amount due to the partner as per the partnership agreement.

Question 40: How is the amount due to the retiring partner paid?

Solution: The amount due to the retiring partner can be paid either in lump sum or in instalments, as per the agreement. If it is paid in instalments, it is usually paid over a period of 2-5 years.

Question 41: What is the treatment of undistributed profits on retirement or death of a partner?

Solution: Undistributed profits are distributed among the remaining partners in the profit sharing ratio. The share of the retiring or deceased partner is calculated based on their share in the profits of the firm till the date of retirement or death.

Question 42: What is the treatment of accumulated profits on retirement or death of a partner?

Solution: Accumulated profits are distributed among the remaining partners in the profit sharing ratio. The share of the