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)
Each of the four events changes who the partners are or how they share profits, so each one reconstitutes the firm.
(A) Death of a partner — True. The remaining partners carry on under a new agreement.
(B) Retirement of a partner — True. The outgoing partner’s share passes to the others.
(C) Admission of a partner — True. A new partner joins and the ratio changes.
(D) Change in Profit sharing ratio among existing partners — True. The partners stay the same but their agreement changes.
NCERT (2026-27 edition):
|
