CUET Preparation Today
A partnership is not dissolved when.......... |
A new partner is admitted into firm. Firm's business is closed down permanently. Firm's books of accounts are permanently closed. Economic relationship between partners comes to an end. |
A new partner is admitted into firm. |
The correct answer is option 1- A new partner is admitted into firm. Note: The given answer is as per NTA. However, there is an error in the wording of the question. On admission of a new partner, the existing partnership is dissolved, but the firm is not dissolved; it is only reconstituted. Therefore, instead of the word “partnership,” the correct term should be “firm” or “partnership firm” for Option (1) to be correct. A partnership firm is not dissolved when a new partner is admitted into firm as on admission of a partner reconstitution of the firm takes place. Reconstitution of the partnership firm takes place in the following ways- |
