Practicing Success
Practicing Success
CUET Preparation Today
Which of the following statement is correct? |
After death, the firm is closed After death of a partner, the share of remaining partner's decrease There may be hidden goodwill in the partnership At the time of retirement it is not necessary to prepare revaluation a/c. |
There may be hidden goodwill in the partnership |
When a partner dies, subject to any contract to the contrary, partnership is dissolved (not closed) but the firm is not dissolved. (Section 42 of the Indian Partnership Act, 1932 ). In other words, on death, the firm is reconstituted. |
