When a firm is not in position to pay sufficient amount to the executor of the deceased partner, it can pay the amount in/ by __________.

Lump sum

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Installment

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Annuity

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None of the above

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Solution

The correct option is B Installment
According to the provisions of the Indian Partnership Act, 1932 , when a partner in the partnership firm dies his assets or income lying with the business has to be paid to his executor or his legal heir. The firm can pay this amount in installments if they are not in the position to pay the amount.

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