Question

Which of the following situations lead to reconstitution of a 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

• A. (A), (B) and (D) only
• B. (A), (B) and (C) only
• C. (A), (B), (C) and (D)
• D. (B), (C) and (D) only

Answer 1

The Correct Option is C

Death of a partner, retirement of a partner, admission of a partner, and change in profit sharing ratio among existing partners are all situations that result in the reconstitution of a partnership firm. - Reconstitution occurs when there is a change in the existing structure of the partnership, whether by the entry or exit of a partner or by altering the rights and liabilities among partners.