Question

Reconstitution of a partnership firm may arise due to which of these events?

• A. Admission, retirement, death of a partner
• B. Expulsion, insolvency of any partner
• C. Transfer of interest by a partner
• D. All or any of the above events

Answer 1

The correct option is D All or any of the above events

Reconstitution means any kind of change in the partnership agreement .

The given options like admission,retirement, death, expulsion, insolvency, transfer of interest bring about a change in the partnership agreement ( in any form like structure, profit sharing ratio, etc.) and hence all of these events mean 'Reconstitution' of a partnership firm.