Question

The estate of a partner who dies, or who becomes insolvent, is not liable for partnership debts contracted _______________________.

• A. After the date of the death or insolvency
• B. Before the date of the death or insolvency
• C. After the 1st day of the financial year in which he dies or becomes insolvent
• D. All of above

Answer 1

The correct option is A After the date of the death or insolvency

Once a partner has exited from the partnership firm, he has no relations further with that firm and he is not liable for any of dues of the firm.

Hence, on death of any partner in the firm, his liability for the dues would be terminated just after the day he died or became insolvent. Termination of his partnership would legally remove him from terms and conditions of the deed.