Chapter 15, Problem 15.9Q

To determine

Disassociation partners:When a partner retires or withdraws from partnership, the partner is said to be disassociated from partnership. In most cases, the partnership itself purchases the disassociated partner’s interest in the partnership for a buyout price.

Section 701 of UPA 1997 gives the guidelines for disassociation of partners such as estimation of buyout price, valuation of assets, and estimation of goodwill, provisions regarding payout of interest to disassociated partner to the date of payment.

The effect of disassociation of partner on the partnership business.