Which of the following facts are related to modes of reconstitution of a partnership firm?
(A) Admission of a new partner
(B) Dissolution of a partnership firm
(C) Death of a partner
(D) Change in the profit sharing ratio among the existing partners
(E) Retirement of a partner
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 2
The correct answer is option (2)- (A), (C), (D) and (E) only.
Reconstitution of the partnership firm takes place in the following ways-
* Admission of a new partner
* Change in profit sharing ratio
* Retirement of a partner
* Death of a partner
These modes represent changes in the composition of the partnership. Dissolution of a partnership firm is not a mode of reconstitution but rather the terminator of the partnership, so it is not related to reconstitution. So, the correct answer is (A), (C), (D) and (E) only