wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

A firm is not liable for the act of an insolvent partner ____________ .

A
After the date of the order of adjudication
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
All acts done before the order of his adjudication
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
If due notice thereof is given
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
If so ordered by the court
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is B After the date of the order of adjudication
1. When a partner in a firm is adjudicated an insolvent he ceases to be a partner on the date on which the order of adjudication is made, whether or not the firm is dissolved.
2. Where under a contract between the partners the firm is not dissolved by the adjudication of a partner as an insolvent, the estate of a partner so adjudicated is not liable for any act of the firm and the firm is not liable for any act of the insolvent, done after the date on which the order of adjudication is made.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Death during the Year
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon