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assalamualaikum in this video i will explain the recording of transactions related to withdrawal of a partner a partner cannot be prevented from withdrawing from partnership as partnership is a voluntary association of two or more people it is assumed that partners mutually agree to withdrawal such that withdrawing partners can sell his interest to an outside party or withdrawing partner can sell his interest to remaining partners the remaining partners pay the withdrawing partner his share from the firms assets in accounting the assets are recorded at book value at the time of settling the retiring partners capital the first thing to do is to re-evaluate the assets of the firm and adjust all partners capital accounts ingly this means that their capital will increase in their profit sharing ratio if the re-evaluated value of assets increases or decrease if the value of assets decreases and then the payment is done to the retiring partner payment to the retiring partner can be done ei