Practicing Success

Register
Start Free Mocks
CUETMOCK

Ace Your

CUET Preparation Today

Start Free Mocks
Home Questions ZCYRJJEM8A
Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

Select out of the following that is not considered as one of the modes of reconstitution of a partnership firm.

Options:

Change in the profit sharing ratio among the existing partners

Admission of a new partner

Retirement of an existing partner

Dissolution of a partnership firm

Correct Answer:

Dissolution of a partnership firm

Explanation:

The correct answer is Option (4) - Dissolution of a 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

** Dissolution of a partnership firm LEADS TO CLOSURE OF BUSINESS.

CUET Questions