Question

Give a word / term / phrase which can substitute each of the following statements :
The method under which payment is made to retiring partner in instalment.

Answer 1

Instalment method

Explanation: Under instalment method, the payment to a retiring partner is made in instalments. In this method, the payment is not made in one instalment (lump sum); rather, the amount due is paid off in instalments. Moreover, the executor is entitled to interest @ 6% p.a. (unless agreed otherwise) on outstanding amount till it remains unpaid.