Question

Which of the following is true or false?

(a) When a partner dies, he leaves the firm for ever.
(b) It is treated as permanent retirement.

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

Answer 1

The correct option is A Both (a) and (b) are true

Section 32(1) of the Indian Partnership Act, 1932 deals with the provisions of the admission and retirement of a partner. According to this, when a partner dies he leaves the firm forever and because of this it is treated as permanent retirement.