Question

Choose the correct answers from the alternatives given.
Where a partner retires, and the remaining partners carry on the business with the firm's property without any final settlement of accounts, the outgoing partner is entitled to _______.

• A. interest at 6 per cent per annum on the amount due to him
• B. such share of the profits as may be attributable to the use of his share of the firms property
• C. either of the above two at the option of the outgoing partner
• D. interest at the rate of 15 per cent per annum on the amount due to him

Answer 1

The correct option is C either of the above two at the option of the outgoing partner

Application of Section 37 of the Partnership Act:

In a firm, if a partner retires and the remaining partners carry on the business with the firm's property without any final settlement of accounts, the retiring partner at his option is entitled to either interest at 6 per cent per annum on the amount due to him or such share of the profits as may be attributable to the use of his share of the firms property.