Question

Which of the following are true or false?

a) A retiring partner will be held liable for the debts incurred by the firm after his retirement.
b) He must give public notice to that effect

• A. Both (A) and (B) are true
• B. Both (A) and (B) are false
• C. (A) is true, but (B) is false
• D. (A) is false, but (B) is true

Answer 1

Answer: (D)

(A) is false, but (B) is true

Section 32 of the Indian partnership act, 1932, states that a retiring partner will be held liable for the debts incurred by the firm before his retirement. He must also give public notice that he is retiring from the firm. Hence, A is false and B is true.