Question

Write the term / word / phrase which can substitute the following statement :
The method under which amount payable to the retiring partner is paid off at a time.

Answer 1

Lump-sum method

Explanation: The method under which the amount payable to a retiring partner is paid off at a time is termed as Lump-sum method. Under this method, nothing is to be transferred to his loan account, as the payment is made in one single instalment and accordingly, no interest is to be paid to him.