When a partner retires and withdraws assets in excess of his book value, the remaining partners absorb the excess:

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When a partner retires and withdraws assets in excess of his book value, the excess is absorbed by the remaining partners in their profit-sharing ratio. This is because the profit-sharing ratio reflects the agreed-upon basis for dividing profits and losses among partners, and it is typically used to handle any adjustments to the partners' capital accounts, including absorbing excess withdrawals by a retiring partner.

When a Partner Retires and Withdraws Assets in Excess of His