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All questions of Unit 3: Registration and Dissolution of a Firm for CA Foundation Exam

 A partnership firm will not be Compulsory dissolved if __________.
  • a)
    One of the partners of the firm becomes insolvent
  • b)
    The business of the firm becomes illegal.
  • c)
    Only one of the several business which can be separated from the other business of the firm becomes illegal.
  • d)
    The different business run by the firm cannot be separated.
Correct answer is option 'C'. Can you explain this answer?

Arjun Singhania answered
A partnership firm can be dissolved by an agreement among all the partners. Section 40 of Indian Partnership Act, 1932 allows the dissolution of a partnership firm if all the partners agree to dissolve it. Partnership concern is created by agreement and similarly it can be dissolved by agreement.
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 The status of a partner making advances to a firm for its business in addition to his Capital, is that of
  • a)
    A partner of the Firm 
  • b)
    An employee of the Firm
  • c)
    A creditor of the Firm
  • d)
    All the above.
Correct answer is option 'C'. Can you explain this answer?

H.k Dance Talent Hub answered
Yes because additional capital given by partner is liability of the firm. when any partner not given additional capital to the firm. firm take loan from any outsiders and that is creditor of the firm.

M is employed by P Q R Bros. a Partnership Firm. M is entitled to a remuneration of Rs. 40,000 p.m. plus 12% on the profit of the firm if profits exceed Rs. 10 lacs. Hence: 
  • a)
    M is not deemed as a partner in the firm 
  • b)
    M is deemed as partner in the firm 
  • c)
    M’s appointment is invalid 
  • d)
    M can claim only Rs. 40,000 p.m. but not share of profits 
Correct answer is option 'A'. Can you explain this answer?

Ankita Mukherjee answered
Explanation:

Partnership Firm Structure:
- In a partnership firm, partners share profits and losses as per the terms of the partnership agreement.

M's Remuneration:
- M is entitled to a fixed remuneration of Rs. 40,000 per month.
- Additionally, M is entitled to 12% of the firm's profit if it exceeds Rs. 10 lakhs.

Non-Partner Status:
- M's entitlement to a fixed remuneration and a share of profits based on a specific condition does not make M a partner in the firm.
- M's role is more of an employee receiving a salary and a performance-based incentive rather than being a partner who shares in the management and decision-making of the firm.

Conclusion:
- Therefore, M is not deemed as a partner in the firm despite being entitled to a share of profits based on the firm's performance.

 Registrar of firms under Section 57 of the Indian Partnership Act is appointed by:
  • a)
    Central Government
  • b)
    State Government
  • c)
    Trade Associations
  • d)
    Local Bodies
Correct answer is option 'B'. Can you explain this answer?

Unknown answered
Section 57 in The Indian Partnership Act, 1932 57. Appointment of Registrars.— (1) The State Government may appoint Registrars of Firms for the purposes of this Act, and may define the areas within which they shall exercise their powers and perform their duties.

The loss arising out of partner’s insolvency shall be borne by _________according to Gamer Vs. Murray case:
  • a)
    All the Partner’s equally
  • b)
    Solvent partners in capital ratio
  • c)
    All the partners in profit & Loss sharing ratio
  • d)
    None of the above
Correct answer is option 'B'. Can you explain this answer?

Arya Shah answered
Upon the insolvency of a partner, we divide his deficiency amongst the other solvent partners in capital ratio.
The journal entry passed will be
Solvent partners cap a/c dr (cap ratio)
To Insolvent partners cap ac (deficiency amt)

 A and B become partners for 16 years. A pays B a premium of Rs. 5000. At the end of 8 years, there is dispute between A and B and they declare a dissolution:
  • a)
    A can get back the entire amount of the premium paid by him to B
  • b)
    A can get back a reasonable part of the premium
  • c)
    A can get back Rs. 2500 form
  • d)
    A cannot get back any amount of premium paid by him
Correct answer is option 'B'. Can you explain this answer?

Dhruba Choudhary answered
Partnership Dissolution

When a partnership is dissolved, it means that the partnership agreement has come to an end. In this situation, the partners have to determine how the partnership's assets and liabilities will be divided.

Premium Paid by A to B

In the given scenario, A paid a premium of Rs. 5000 to B when they became partners. However, after 8 years, there was a dispute between them, and they decided to dissolve the partnership.

Options for A

The question asks which of the following options is true for A regarding the premium paid by him to B:

A) A can get back the entire amount of the premium paid by him to B
B) A can get back a reasonable part of the premium
C) A can get back Rs. 2500 form
D) A cannot get back any amount of premium paid by him

Explanation of Option B

Option B is the correct answer because A cannot get back the entire premium paid to B, nor can he get back nothing. The amount that A can get back depends on the circumstances of the dissolution.

If the dissolution is due to a breach of contract by B, A may be entitled to a larger portion of the premium. However, if A is at fault, he may not be entitled to any refund.

Therefore, A can get back a reasonable part of the premium paid by him to B, based on the circumstances of the dissolution.

Conclusion

In conclusion, when a partnership is dissolved, the partners have to determine how the partnership's assets and liabilities will be divided. In the given scenario, A can get back a reasonable part of the premium paid by him to B, based on the circumstances of the dissolution.

ABC is a registered firm. C died on 30th June. A and B sue X in the name of ABC. What is the consequence?
  • a)
    The suit cannot be maintained
  • b)
    The suit can be maintained
  • c)
    The suit can be maintained when the firm is freshly registered 
  • d)
    None of the above
Correct answer is option 'B'. Can you explain this answer?

Prashanth Datta answered
The consequence of C's death on the suit filed by A and B in the name of ABC

The correct answer is option 'B': The suit can be maintained.

Explanation:

When a firm is registered, it becomes a separate legal entity with its own rights and liabilities. It can sue and be sued in its own name.

1. Status of ABC as a registered firm
- The fact that ABC is a registered firm implies that it has a legal existence separate from its partners.
- As a registered firm, ABC can sue and be sued in its own name.
- The registration of ABC provides it with the capacity to enter into contracts, own property, and take legal actions.

2. Death of C
- C's death on 30th June does not automatically dissolve the firm or affect its legal existence.
- Even after C's death, ABC continues to exist as a registered firm.
- The remaining partners, A and B, can continue to carry on the business of the firm.

3. A and B suing X in the name of ABC
- A and B, as partners of ABC, have the authority to represent the firm in legal matters.
- They have the right to sue on behalf of the firm and enforce its rights.
- A and B can file a suit against X in the name of ABC, seeking appropriate legal remedies.

4. Consequence of C's death on the suit
- The death of a partner does not invalidate the firm's legal capacity to sue or be sued.
- As long as the firm is registered, the suit filed by A and B in the name of ABC can be maintained.
- The death of C does not affect the firm's ability to enforce its rights through legal proceedings.

Conclusion:

In this scenario, since ABC is a registered firm, the death of C does not prevent A and B from suing X in the name of the firm. The suit can be maintained, and A and B can seek legal remedies on behalf of ABC.

 Loss arising out of partner’s insolvency can be recouped form_________:
  • a)
    Solvent partners
  • b)
    The firm itself
  • c)
    The partner’s estate
  • d)
    The partner’s legal heirs
Correct answer is option 'A'. Can you explain this answer?

Neel Kothari answered
According to Indian Partnership Act .....it is stated that the partners have unlimited liability but when the firm is dissolved and if any of the partners become insolvent ...then the solvent partners need to coupe that deficiency of insolvent partner in the Profit sharing Ratio

 When an agreement to form a partnership is signed by all the partners, the document is called 
  • a)
    Promote
  • b)
    Partnership deed
  • c)
    Memorandum of Association 
  • d)
    None of the above.
Correct answer is option 'B'. Can you explain this answer?

Sanjana Khanna answered
When two or more people want to start a new business & to share the profits & losses they come together to form a partnership such written agreement is known as 'Partnership Deed'. One can also call it is a 'Partnership Agreement'.

The conclusive evidence of registration of firm is: 
  • a)
    The certificate of registration of firms 
  • b)
    The certified copy of register of firm 
  • c)
    The register of central government 
  • d)
    None of these 
Correct answer is option 'A'. Can you explain this answer?

Shanaya Dasgupta answered
The conclusive evidence of registration of a firm is the certificate of registration of firms. Let's understand why this is the correct answer in detail.

Certificate of Registration of Firms:
- The certificate of registration of firms is a legal document issued by the Registrar of Firms, which is the conclusive evidence of the registration of a firm.
- It serves as proof that the firm has been registered under the Indian Partnership Act, 1932.
- The certificate contains important information about the firm, such as its name, address, date of registration, and the names of the partners.

Certified Copy of Register of Firm:
- While the certified copy of the register of firm is an important document, it is not the conclusive evidence of registration.
- The register of firm is maintained by the Registrar of Firms and contains details such as the name of the firm, its partners, and their addresses.
- A certified copy of the register can be obtained for reference purposes, but it does not serve as proof of registration.

Register of Central Government:
- The register of central government is not directly related to the registration of a firm.
- The central government maintains various registers for different purposes, but they do not provide conclusive evidence of a firm's registration.

None of These:
- This option is incorrect because the certificate of registration of firms is indeed the conclusive evidence of registration.

In conclusion, the certificate of registration of firms is the conclusive evidence of a firm's registration under the Indian Partnership Act, 1932. It is a legal document issued by the Registrar of Firms and contains vital information about the firm. While other documents such as the certified copy of the register of firm and the register of central government are important, they do not serve as conclusive evidence of registration.

 A partnership deed must be drafted properly and stamped according to provisions of:
  • a)
    Indian Stamp Act 
  • b)
    Indian Tax Act 
  • c)
    The companies Act 
  • d)
    The Indian Partnership Act 
Correct answer is option 'A'. Can you explain this answer?

Pallabi Khanna answered
The correct option is A, the partnership deed must be drafted properly and stamped according to the provisions of the Indian Stamp Act.

Explanation:
A partnership deed is a legal document that outlines the terms and conditions of a partnership between two or more individuals. It is important to draft this document properly because it lays the foundation for the partnership and sets out the rights and responsibilities of each partner.

Stamp duty is a tax that is levied on certain legal documents to make them legally valid. In India, the Indian Stamp Act governs the stamp duty payable on various legal documents, including partnership deeds.

Therefore, it is important to ensure that the partnership deed is stamped in accordance with the Indian Stamp Act to ensure its legal validity. Failure to do so could result in the partnership deed being declared invalid by a court of law.

In summary, a partnership deed must be drafted properly and stamped in accordance with the Indian Stamp Act to ensure its legal validity.

When all the partners except one become insolvent, the firm is _________.
  • a)
    Compulsorily dissolved
  • b)
    Not compulsorily dissolved
  • c)
    Reconstituted
  • d)
    Renewed.
Correct answer is option 'A'. Can you explain this answer?

Akshat Choudhary answered
When all the partners except one become insolvent, the firm is compulsorily dissolved.

Explanation:
- When a partnership firm is formed, it consists of two or more partners who agree to carry on a business with the objective of making a profit.
- However, there are certain situations where a partnership firm may need to be dissolved, including when all partners except one become insolvent.
- Insolvency refers to a situation where an individual or entity is unable to pay off its debts as they become due.
- When all partners except one become insolvent, it means that they are no longer able to contribute to the firm's liabilities and obligations.
- In such a scenario, the remaining partner is left as the sole responsible party for the firm's debts and liabilities.
- This puts an unfair burden on the remaining partner, as they may not have the financial resources to single-handedly manage the firm's debts and continue its operations.
- As a result, in order to protect the interests of the remaining partner and to ensure a fair distribution of liabilities, the firm is compulsorily dissolved.
- Compulsory dissolution means that the partnership firm is dissolved by operation of law, without the need for any formal agreement or consent from the partners.
- Once the firm is dissolved, its assets and liabilities are liquidated and distributed among the partners, in accordance with the partnership agreement or the applicable laws.
- The remaining partner may choose to start a new business or enter into a new partnership arrangement, if they wish to continue with their entrepreneurial pursuits.

In conclusion, when all the partners except one become insolvent, the partnership firm is compulsorily dissolved to protect the interests of the remaining partner and ensure a fair distribution of liabilities.

A partnership deed must be drafted properly and stamped according to provisions of:
  • a)
    Indian Stamp Act 
  • b)
    Indian Tax Act 
  • c)
    The companies Act 
  • d)
    The Indian Partnership Act 
Correct answer is option 'A'. Can you explain this answer?

Jyoti Nair answered
Explanation:
A partnership deed is a legal document that outlines the terms and conditions of a partnership between two or more individuals. It is an important document as it governs the rights, responsibilities, and obligations of each partner and helps in resolving any disputes that may arise in the future.

The partnership deed must be drafted properly and stamped according to the provisions of the Indian Stamp Act. This act governs the payment of stamp duty on various legal documents, including partnership deeds. Here is an explanation of why option 'A' (Indian Stamp Act) is the correct answer:

Indian Stamp Act:
- The Indian Stamp Act, 1899 is a legislation that governs the payment of stamp duty on various legal documents in India. Stamp duty is a type of tax that is levied on certain documents to make them legally valid and enforceable.
- Partnership deeds are considered to be an instrument of partnership and are subject to stamp duty as per the provisions of the Indian Stamp Act.
- The stamp duty payable on a partnership deed varies from state to state as it is a state subject. Each state has its own stamp duty rates and rules, which need to be followed while drafting and stamping the partnership deed.

Other Acts:
- The Indian Tax Act (option 'B') is a generic term and does not specifically apply to partnership deeds. The taxation of partnership firms is governed by the Income Tax Act, 1961, which is a separate legislation altogether.
- The Companies Act (option 'C') applies to companies and not partnership firms. Partnership firms are governed by the Indian Partnership Act, 1932, which is a separate legislation specifically designed for partnerships.
- The Indian Partnership Act, 1932 (option 'D') governs the formation, operation, and dissolution of partnership firms in India. While it is an important act for partnership firms, it does not specifically deal with the stamping of partnership deeds.

Therefore, the correct answer is option 'A' - the partnership deed must be drafted properly and stamped according to the provisions of the Indian Stamp Act. This ensures that the partnership deed is legally valid and enforceable.

The conclusive evidence of registration of firm is: 
  • a)
    The certified copy of register of firm 
  • b)
    The register of Central Government. 
  • c)
    The certificate of registration of firm 
  • d)
    None of these 
Correct answer is option 'C'. Can you explain this answer?

Rajesh Thankapan answered
Partnership registration isnt compulsory. When the partners tries to register their partnership with the registrars , after the registrar is satisfied with appropriate details. The registrar would issue a certificate or registration. This can be considered as a relatable documentary evidence that the partnership is registered

 Which of the following are not affected by the non-registration of the firm?
  • a)
    The right of a third party to sue the firm
  • b)
    The right of a partner to file a suit for the dissolution of the firm
  • c)
    The power of ‘official assignee’ to release the property of an insolvent partner
  • d)
    All of the above
Correct answer is option 'D'. Can you explain this answer?

Muskaan Tiwari answered
Understanding Non-Registration of a Firm
The non-registration of a firm has specific implications on the rights and powers of various stakeholders involved in the partnership. Here, we analyze why all the options listed are not affected by the non-registration.

1. Right of a Third Party to Sue the Firm
- A third party is generally not affected by the non-registration of a firm.
- They retain the right to file a suit against the firm for any contractual obligations.
- Non-registration primarily affects the rights of the partners among themselves, not their interactions with external parties.

2. Right of a Partner to File a Suit for the Dissolution of the Firm
- Partners can still file a suit for the dissolution of the firm regardless of its registration status.
- The internal rights of partners are protected, allowing them to seek legal remedies even in the absence of registration.

3. Power of ‘Official Assignee’ to Release the Property of an Insolvent Partner
- The official assignee's authority to handle the assets of an insolvent partner remains intact.
- Non-registration does not hinder the official assignee's ability to manage and release property, thereby protecting creditors’ interests.

Conclusion
- All the above rights and powers are unaffected by the non-registration of the firm.
- Therefore, the correct answer is option 'D', indicating that none of these aspects are impacted by the firm’s non-registration.
Understanding these nuances is crucial for partners, creditors, and third parties engaged with the firm, ensuring they comprehend their rights and remedies under the law.

There is compulsory dissolution of the firm:
  • a)
    On the death of majority of partners
  • b)
    On the insolvency of all the partners
  • c)
    In the case of continuous losses
  • d)
    In the case of deadlock in the management.
Correct answer is option 'B'. Can you explain this answer?

Arun Khanna answered
A firm is compulsorily dissolved:

(i) By the adjudication as insolvent of all the partners or of all partners except one.

(ii) By the happening of any event which makes it unlawful for the business of the firm to be carried on or for the partners to carry it on in partnership.

When a partner of a firm is adjudicated as an insolvent, he ceases to be a partner as _______.
  • a)
    On the date of order of adjudication 
  • b)
    On the date of dissolution 
  • c)
    On the date of information of insolvency 
  • d)
    Decided by Indian partnership firm
Correct answer is option 'A'. Can you explain this answer?

Arjun Singhania answered
Insolvency of a partner
Where a partner in a firm is adjudicated an insolvent he ceases to be a partner on the date on which the order of adjudication is made, whether or not the firm is hereby dissolved.

Where under a contract between the partners the firm is not dissolved by the adjudication of a partner as an insolvent, the estate of a partner so adjudicated is not liable for any act of the firm and the firm is not liable for any act of the insolvent, done after the date on which the order of adjudication is made.

A partnership firm is compulsorily dissolved where: 
  • a)
    All Partners have become insolvent 
  • b)
    Firm’s business has become unlawful 
  • c)
    The fixed term has expired 
  • d)
    In case (a) & (b) only 
Correct answer is option 'D'. Can you explain this answer?

Ankita Mukherjee answered
Has completed the purpose for which it was formedc)All Partners have mutually agreed to dissolved)One of the Partners has become insanee)One of the Partners has transferred his share in the firm to a third party.

 The mode of dissolution of a partnership firm provided under the Indian Partnership Act, 1932 is
  • a)
    Illustrative
  • b)
    Inclusive
  • c)
    Exhaustive
  • d)
    None of the above
Correct answer is option 'B'. Can you explain this answer?

Puja Das answered
The Mode of Dissolution of a Partnership Firm under the Indian Partnership Act, 1932

The Indian Partnership Act, 1932 provides various modes of dissolution for a partnership firm. Among these modes, the mode of dissolution is inclusive.

Explanation:
The mode of dissolution refers to the different ways in which a partnership firm can be legally terminated or dissolved. The Indian Partnership Act, 1932 provides guidelines for the dissolution of a partnership firm in Section 40 to Section 44.

Inclusive Mode of Dissolution:
The term "inclusive" means that the modes of dissolution provided under the Indian Partnership Act, 1932 are not exhaustive, but rather represent a list of options that are available for the partners to dissolve their firm. In other words, the Act does not limit the partners to only these modes of dissolution, but rather allows them to choose any of these modes or any other mutually agreed upon mode.

Section 43 of the Indian Partnership Act, 1932:
Section 43 of the Indian Partnership Act, 1932 specifically mentions the modes of dissolution of a partnership firm. According to this section, a partnership firm can be dissolved in the following ways:

1. By mutual agreement: The partners may agree to dissolve the partnership firm mutually by entering into a dissolution agreement.

2. By notice: A partner may give notice to the other partners of his intention to dissolve the partnership firm.

3. By expiration of the term: If the partnership firm is formed for a fixed term or a specific project, it is dissolved automatically upon the expiration of that term or completion of the project.

4. By completion of the venture: If the partnership firm is formed for a specific venture or undertaking, it is dissolved when the venture or undertaking is completed.

5. By death or insolvency: The partnership firm is dissolved if any of the partners die or become insolvent.

6. By court order: The court may order the dissolution of a partnership firm on various grounds, such as misconduct, incapacity, or willful breach of agreement by a partner.

7. By agreement becoming illegal: If the partnership firm's business becomes unlawful or illegal, it is dissolved.

These modes of dissolution provided under Section 43 of the Indian Partnership Act, 1932 are not exhaustive and partners can mutually agree upon any other mode of dissolution as well. Therefore, the mode of dissolution of a partnership firm under the Indian Partnership Act, 1932 is inclusive.

At the time of dissolution of a firm, every partners or his representative is entitled to have the ________ applied in payment of the debts and liabilities of the firm: 
  • a)
    Assets of the firm 
  • b)
    Property of the firm 
  • c)
    Liability of the firm 
  • d)
    Good will of the firm
Correct answer is option 'B'. Can you explain this answer?

Nandini Iyer answered
 A partnership firm is not a person and therefore a firm can not enter into partnership with any firm or individual. ... Company: A company is a juristic person and therefore can become a partner in a partnership firm, if it is authorized to do so by its objects.

 A registered firm is a: 
  • a)
    Legal person 
  • b)
    Illegal person 
  • c)
    Corporate body 
  • d)
    Co-operative organisations 
Correct answer is option 'A'. Can you explain this answer?

Vivek Vivek answered
A registered firm is a legal person as it can sue others . A firm can't be a corporate body or co-operative organisation

One of the following is not the disability of an unregistered firm:
  • a)
    It cannot file a suit against the third parties
  • b)
    Its partners cannot file a suit against the firm.
  • c)
    It cannot claim a set off exceeding Rs. 100/-
  • d)
    It cannot be sued by a third party.
Correct answer is option 'D'. Can you explain this answer?

Rithika Nair answered
Explanation:

Disabilities of an Unregistered Firm

An unregistered firm is defined as a partnership firm that is not registered with the Registrar of Firms. The following are some of the disabilities of an unregistered firm:

Cannot file a suit against the third parties

An unregistered firm cannot file a suit against a third party to enforce its rights. However, an unregistered firm can file a suit for the dissolution of the partnership, accounts, or any other matter arising out of the partnership.

Partners cannot file a suit against the firm

The partners of an unregistered firm cannot file a suit against the firm for the enforcement of their rights. However, the partners can file a suit for the dissolution of the partnership, accounts, or any other matter arising out of the partnership.

Cannot claim a set-off exceeding Rs. 100/-

An unregistered firm cannot claim a set-off exceeding Rs. 100/- in a suit filed against it. A set-off is a legal right of a debtor to deduct from the amount due to the creditor the amount which the creditor owes to the debtor.

Cannot be sued by a third party

An unregistered firm can be sued by a third party for the enforcement of its rights. However, a third party cannot file a suit against an unregistered firm for a claim arising out of a contract.

Conclusion

In conclusion, an unregistered firm has certain disabilities, such as not being able to file a suit against a third party, partners cannot file a suit against the firm, cannot claim a set-off exceeding Rs. 100/-, but it can be sued by a third party.

 If a firm wants to register itself, it will go to _______:
  • a)
    Registrar of Firms 
  • b)
    Registrar of Companies 
  • c)
    Court
  • d)
    Any of these 
Correct answer is option 'A'. Can you explain this answer?

Jayant Mishra answered
The Registrar of Companies (ROC) is an office under the Indian Ministry of Corporate Affairs that deals with administration of the Companies Act 1956 and Companies Act, 2013. There are currently 22 Registrars of Companies (ROC) operating from offices in all major states of India.

 
 In case of unregistered firms, public notice is given in the following manner: 
  • a)
    Publishing the notice in one vernacular newspaper circulating in the district where the firm’s principal place of business is situated
  • b)
    Publishing the notice in the Official Gazette
  • c)
    Both (a) and (b)
  • d)
    Either (a) or (b) 
Correct answer is option 'C'. Can you explain this answer?

Muskaan Tiwari answered
Public Notice for Unregistered Firms
In the context of unregistered firms, it is essential to provide public notice to inform stakeholders and the general public about the firm’s existence and its operations. This is crucial for legal and transparency purposes.

Methods of Publication
The public notice can be given in two primary ways:
  • Publishing in a Vernacular Newspaper:
    - This involves publishing the notice in a local language newspaper that circulates in the district where the firm’s principal place of business is situated.
    - This method ensures that the local population is aware of the firm's existence, which is vital for local business interactions and legal obligations.
  • Publishing in the Official Gazette:
    - The Official Gazette serves as a formal publication by the government and is used to communicate important legal notices to the public.
    - This method adds a layer of authenticity and legal acknowledgment to the notice, making it official and recognized by authorities.



Conclusion
Given the importance of both methods, the correct answer is option 'C', which states that public notice should be given by both techniques. This dual approach ensures comprehensive coverage and fulfills legal requirements, allowing for maximum awareness among the public and stakeholders regarding the unregistered firm's operations.

XYZ a partnership firm was constituted on 1.4.2008. on 25th April the partners resolved to get the firm registered with the Registrar of Firm. 
The firm prepared the necessary documents for registration on 26th April which were signed on 28th April. They send the documents to the Registrar office on 30th April by Registered post which was received in the Registrar office on 4th May, 2008. The registrar filed the statement and entered the firms name in the register of Firms on 20th May, 2008. The firm will be deemed to have been registered on:  
  • a)
    30thApril 
  • b)
    28th April 
  • c)
    20thMay
  • d)
    4thMay
Correct answer is option 'C'. Can you explain this answer?

Aditi Joshi answered
Explanation:

The registration of a partnership firm is an important legal requirement to establish its existence and to avail various benefits and protections under the law. In this scenario, the firm XYZ was constituted on 1st April 2008 and the partners decided to get it registered on 25th April 2008. Let's analyze the timeline of events to determine the date of registration.

Timeline of Events:

1. Firm constituted on 1st April 2008.
2. Partners resolved to get the firm registered on 25th April 2008.
3. Necessary documents for registration were prepared on 26th April 2008.
4. Documents were signed on 28th April 2008.
5. Documents were sent to the Registrar office on 30th April 2008.
6. Documents were received in the Registrar office on 4th May 2008.
7. Registrar filed the statement and entered the firm's name in the register of Firms on 20th May 2008.

Determination of Registration Date:

The registration date of a partnership firm is generally considered to be the date on which the Registrar files the statement and enters the firm's name in the register of Firms. In this case, the Registrar filed the statement and entered the firm's name on 20th May 2008. Therefore, the firm XYZ will be deemed to have been registered on 20th May 2008.

Conclusion:

Based on the given timeline of events, it can be concluded that the partnership firm XYZ will be deemed to have been registered on 20th May 2008. It is important to note that the date of receipt of documents by the Registrar (4th May 2008) or the date of signing the documents (28th April 2008) does not determine the registration date. The registration date is determined by the filing of the statement and the entry of the firm's name in the register of Firms, which occurred on 20th May 2008 in this case.

Chapter doubts & questions for Unit 3: Registration and Dissolution of a Firm - Business Laws for CA Foundation 2025 is part of CA Foundation exam preparation. The chapters have been prepared according to the CA Foundation exam syllabus. The Chapter doubts & questions, notes, tests & MCQs are made for CA Foundation 2025 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests here.

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