Which condition in the partnership deed is most useful when a partner retires?

Correct answer: Method of settlement and payment (procedure for paying amounts due to the retiring partner)

When a partner retires, the deed clause that specifies how and when amounts due (capital, share of profits, share of goodwill if any, interest) will be settled is directly useful. A clear method of settlement and payment states whether the retiring partner will receive a lump sum, installments, interest on delayed payment, and the timeline. Option B (treatment of goodwill) is relevant but limited to valuation/accounting of goodwill — it does not by itself specify the payment procedure. Option C (formula for calculating the retiring partner's share) helps determine the amount but not how it is paid. Option D (revaluation rule) deals with adjusting asset/liability values, not the settlement mechanism. Exam tip: look for deed clauses mentioning “installment, lump sum, interest, time limit” to identify the settlement/payment condition quickly.