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Adjustment in regard to goodwill., Adjustment in regard to revaluation of assets and reassessment of liabilities. Adjustment in regard to undistributed profits., Adjustment in regard to the Joint Life Policy and individual policies
Adjust profit & loss sharing ratio. Adjust capital of each parter.
At the time of the retirement or death of a partner, adjustments are made for the following:
1. Calculation of new profit sharing ratio
2. Revaluation of assets and liabilities
3. Adjustment regarding undistributed profits and losses
4. Adjustment regarding goodwill
5. Adjustment of capital
6. Ascertainment of due amount to retiring partner
7. Mode of payment to the outgoing partners.