X and Y are partners. X, without the consent of Y buys shares in his own name with the capital of the firm.
Do such shares constitute partnership property?
Would it make any difference if X debits himself in the firm books and becomes a debtor to the firm for the amount of purchase money?

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Solution

Solution Part (a)
Section to which the given problem relates: Section 14
Decision: Yes.
Reason: Unless the contrary intention appears, the property acquired with the money of the firm is deemed to have been acquired for the firm.
Part(b)
In this case, shares do not constitute partnership property because the debit entry in X's account shows that the shares were not acquired for the firm.

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X and Y are partners. X, without the consent of Y buys shares in his own name with the capital of the firm. Do such shares constitute partnership property? Would it make any difference if X debits himself in the firm books and becomes a debtor to the firm for the amount of purchase money?

X and Y are partners. X, without the consent of Y buys shares in his own name with the capital of the firm.
Do such shares constitute partnership property?
Would it make any difference if X debits himself in the firm books and becomes a debtor to the firm for the amount of purchase money?