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chandra babu says
we have only 2 partner in a partnership firm and 1 of the partner is willing to retire from partnership firm and the other remaining partner is willing to continue the business as a sole trader with the same firm name with all the assets of the existing partner ship firm. the firm is not distributing the capital assets i.e machinery to the partners. whether capital gains are attracted or not and how the closing stock is to be valued. since the firm contains only 2 partner, on retirement of 1 partner the firms is automatically dissolved .please clarify the query.