A, B and C are partner's in a firm. If D is admitted as a new partner __________________.

Old firm is dissolved

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Old firm and old partnership is dissolved

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Old partnership is reconstituted

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

None of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C Old partnership is reconstituted
A new partner may be admitted when the firm needs additional capital or managerial help. According to the provisions of Partnership Act 1932 unless it is otherwise provided in the partnership deed a new partner can be admitted only when the existing partners unanimously agree for it. For example, A, B and C are partner's in a firm. If D is admitted as a new partner then the old partnership stands reconstituted.

Suggest Corrections

Similar questions

Can a minor be admitted as a partner in a firm? Explain the status of the minor in a partnership firm.

Can a partner be admitted into the partnership firm with the consent of majority partners?

Join BYJU'S Learning Program