Which of the following is NOT a way in which partners can reconstitute a partnership firm?
Answer & explanation
Correct answer: option 2
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-
* Admission of a new partner
* Change in profit sharing ratio
* Retirement of a partner
* Death of a partner