When a partner dies or withdraws from the partnership, must he be paid in cash?

Answer

No, it is not incumbent to pay in cash to the heirs or to the one who is withdrawing from the partnership. If they demand immediate payment, their right extends to all the assets - to the cash, stock, vehicles, fixtures, fittings, etc. Firstly, the value of their share should be calculated. Then an arrangement should be made to pay them, either in cash, or in instalments or part cash and part other assets.