Reconstitution of Partnership means:

A. Change in Profit sharing Ratio among existing partners
B. Dissolution of Partnership firm
C. Retirement of Partner
D. Admission of Partner
E. Death of Partner

Choose the correct answer from the options given below:

A, C, D and E only

The correct answer is Option (3) → A, C, D and E only.

B. Dissolution of Partnership firm- It leads to closure of business.

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.