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Partnership Deed

X, Y and Z ar...

Question

X, Y and Z are partners. The partnership agreement is silent. State whether the firm is dissolved on 31.03.99 in each of the following alternative cases:
case (a): If the firm was constituted for 5 years and 5 years have expired on 31.03.99.
Case (b): If the firm was constituted for completion of a construction of a bridge and the construction completed on 31.03.99.
Case (C): If X died on 31.03.99.
Case (d): If X applies for insolvency on 31.03.99 and is declared insolvent on 30.04.99.
Case (e): If X retires on 31.03.99.
Case (f): If X is expelled as partner on 31 03.99 and the expulsion is invalid.

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Solution

Solution: Section to which the given problem relates: Section 42.
Decision and Reason: Unless agreed otherwise, the provisions of Section 42 would be applicable.
Case (a): The firm is dissolved by the expiry of the fixed term.
Case (b): The firm is dissolved, on the completion of that particular adventure for which the firm was constituted.
Case (c): The firm is dissolved on the death of a partner.
Case (d): The firm is not dissolved on 31.03.99. The firm would be dissolved on the date of order of adjudication, i.e. 30.04.99.
Case (e): The firm is not dissolved on the retirement of a partner.
Case (f) The firm is not dissolved on expulsion of a partner irrespective of the fact whether expulsion is valid or not.

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Q. X, Y and Z are partners and there is no provision in partnership agreement for duration of the partnership. State whether the firm is dissolved in each of the following alternative case:
Case (a) If. X gives a notice in writing to Y of his .intention to dissolve the firm on 31.03.99.
Case(b):If X gives a notice in writing to Yon 31.03.99 and to Z on 02.04.99. The notice contained X s. intention to dissolve. the firm but no. date of dissolution was mentioned in the notice.
Case (C): If in case (b), it was mentioned in the notice that the firm will be dissolved from 1st May, 1999.

Q. X, Y and Z are partners. The partnership agreement is silent. State whether the firm is dissolved in each of the following alternative cases:
Case (a): If X, Y, Z are declared as insolvent,
Case (b): If X and Y are declared as insolvent,
Case(c): If only X is declared as insolvent.

If all or all but one of the partners of the firm becomes insolvent then the company is a case of ___________

X

Y

are partners sharing profits and losses in the ratio of

2 : 3

with capitals of

R s . 2, 00, 000

R s . 1, 00, 000

respectively. Pass the necessary Journal entry or entries for distribution of profit/loss for the year ended 31st March, 2018 in each of the alternative cases:
Case 1. If Partnership Deed is silent as to the interest on capital and the profit for the year is

R s . 20, 000

.
Case 2. If Partnership Deed provides for interest on capital @

6 %

p.a. and loss for the year is

R s . 15, 000

.
Case 3. If Partnership Deed provides for-interest on capital @

6 %

p.a. and the profit for the year is

R s . 21, 000

.
Case 4. If Partnership Deed provides for interest on capital @

6 %

p.a. as a charge on profit and the profit for the year is

R s . 20, 000

.
Case 5. If Partnership Deed provides for interest on capital @

6 %

p.a. as a charge on profit and the profit for the year is

R s . 2, 000

.
Case 6. If Partnership Deed provides for interest on capital @

6 %

p.a. as a charge on profit and the profit for the year is

R s . 18, 000

Q. In which of the following cases, a partnership firm may be dissolved?
X. On the death of a partner.
Y. On the insolvency of a partner
Z. On the retirement of a partner
Correct option is _______________.

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