Urgent!! Please Help!!

Is it compulsory to re-value assets and liabilities at the time of retirement of a partner?

Kindly answer with relevant reference of law.

yes it is compulsary to revalue....as per Indian partnership Act,1932

d reason behind it is dat d assets in book of A/c are recorded at historical cost but on d date of retirement we need to make sure dat d out going partner neither gets benefit of over-valued assets nor suffers loss due to undervalued-assets

so v compare d book value wid d actual fair market value n adjust it accordingly...also d continuing partners are eligible for post-rtetiremnt profits/losses...all d pre-retiremnt profits/losses belong to all d partners....so revaluation must b done at the time of retiremnt so as to give a correct pictre of d affairs... 

hope ur query is resolved...