Which of the following situations lead to reconstitution of partnership firm?
(A) Death of a partner
(B) Retirement of a partner
(C) Admission of a partner
(D) Change in Profit sharing ratio among existing partners
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A), (B), (C) and (D).
All situations lead to reconstitution of 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
These modes represent changes in the composition of the partnership.