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Introduction to Partnership

Can a partner...

Question

Can a partner be exempted from sharing losses in a firm? If yes, under what circumstances?

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Solution

Partnership is a relation between two or more person for sharing the profits of the business carried on by them. The word profit includes losses too. So,the partners should share the losses in the ratio they share profits.
But in some cases a partner can be exempted from sharing of losses. In case a Minor is admitted as partner for benefits of the partnership,then he can be exempted from sharing the losses.

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Similar questions

Can a partner be exempted from sharing the losses of the firm?

Q. A, B, C are partners in a firm sharing profits and losses in ratio 5:3:4. If Partner B dies than new profit sharing ratio will be ______.

Q. A, B & C partners in a firm sharing profits and losses in the ratio of 4:3:2. B decided to retire from the firm B gives his share to A only. What is the gain ratio?

Q. A, B & C are partners sharing profits and losses in the ratio of 3:2:1. B retired from the firm. What is the gain ratio of the partners A and C?

A, B

C

are partners in a firm sharing profits and losses in the ratio of

4 : 3 : 2

B

decides to retire from the firm. Calculate new profit-sharing ratio of

A

C

in the following circumstances:
(a) If

B

given his share to

A

C

in the original ratio of

A

C

B

gives his share to

A

C

in equal proportion.
(d) If

B

gives his share to

A

C

in the ratio of

3 : 1

B

gives his share to

A

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