Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:
A and B are partners and C is the manager. A want to admit C as a partner with retrospective effect to which B denies. C argues with him but still B does not agree. Can C admit as a partner?
Options:
Yes, because one partner agrees
Yes, if both partners agree
No
Yes, with immediate effect not retrospective effect
Correct Answer:
Yes, if both partners agree
Explanation:
If both partners agree only then C can admit as a partner with retrospective effect otherwise, he will continue as a manager.