Practicing Success
Which of the following is NOT a way in which partners can reconstitute a partnership firm? |
Admission of a new partner Sale of the firm's assets Retirement of a partner Change in profit sharing ratio |
Sale of the firm's assets |
The correct answer is option 2 i.e. sale of firm's assets. Sale of the assets of the partnership firm does not form the reconstitution of the partnership firm. Reconstitution of the partnership firm takes place in the following ways- |