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Robert, who is a sleeping partner in the firm wanted to inspect the books of accounts of the partnership firm due to certain allegations of financial impropriety by some of the partners. The other partners in the firm objected to the same and denied access to books of accounts. The action of the other partners is -----------.
  • a)
    Not correct since Robert has right of access to books of accounts
  • b)
    Valid since Robert is a sleeping partner who has no such rights
  • c)
    Valid since a partner has no right to access to access to books of accounts
  • d)
    Valid since the reason cited by Robert is unacceptable.
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Robert, who is a sleeping partner in the firm wanted to inspect the bo...
Access to Books of Accounts by a Sleeping Partner

Background: Robert is a sleeping partner in a partnership firm and he wants to inspect the books of accounts due to certain allegations of financial impropriety by some of the partners. The other partners in the firm have denied access to the books of accounts.

Legal position: The action of the other partners in denying access to books of accounts to a sleeping partner is not correct since Robert has the right of access to books of accounts as a partner in the firm.

Explanation:
Partnership is a type of business organization where two or more persons come together to carry on a business with a view to making profits. In a partnership firm, the partners contribute capital, share profits and losses, and have a right to participate in the management of the firm. A sleeping partner is a partner who contributes capital but does not take part in the management of the firm.

The rights and duties of partners in a partnership firm are governed by the Partnership Act, 1932. According to the Act, every partner has the right to inspect and have access to the books of accounts of the firm. This right is not affected by the fact that the partner is a sleeping partner or does not take part in the management of the firm.

In the present case, Robert, as a partner in the firm, has the right to inspect and have access to the books of accounts. The fact that he is a sleeping partner does not affect this right. The other partners in the firm cannot deny him access to the books of accounts.

If any partner is denied access to the books of accounts, he can approach the court for relief. The court may order the other partners to allow access to the books of accounts or take any other appropriate action.

Conclusion: In conclusion, the action of the other partners in denying access to books of accounts to a sleeping partner is not correct since Robert has the right of access to books of accounts as a partner in the firm.
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Community Answer
Robert, who is a sleeping partner in the firm wanted to inspect the bo...
A option because Sleeping partner means the partner who does not participate in management, Elsewhere he has all other rights i.e. he/she has the right to earn profits, he/she has a unlimited liability, he/she has invested his capital.
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Robert, who is a sleeping partner in the firm wanted to inspect the books of accounts of the partnership firm due to certain allegations of financial impropriety by some of the partners. The other partners in the firm objected to the same and denied access to books of accounts. The action of the other partners is -----------.a)Not correct since Robert has right of access to books of accountsb)Valid since Robert is a sleeping partner who has no such rightsc)Valid since a partner has no right to access to access to books of accountsd)Valid since the reason cited by Robert is unacceptable.Correct answer is option 'A'. Can you explain this answer?
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Robert, who is a sleeping partner in the firm wanted to inspect the books of accounts of the partnership firm due to certain allegations of financial impropriety by some of the partners. The other partners in the firm objected to the same and denied access to books of accounts. The action of the other partners is -----------.a)Not correct since Robert has right of access to books of accountsb)Valid since Robert is a sleeping partner who has no such rightsc)Valid since a partner has no right to access to access to books of accountsd)Valid since the reason cited by Robert is unacceptable.Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Robert, who is a sleeping partner in the firm wanted to inspect the books of accounts of the partnership firm due to certain allegations of financial impropriety by some of the partners. The other partners in the firm objected to the same and denied access to books of accounts. The action of the other partners is -----------.a)Not correct since Robert has right of access to books of accountsb)Valid since Robert is a sleeping partner who has no such rightsc)Valid since a partner has no right to access to access to books of accountsd)Valid since the reason cited by Robert is unacceptable.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Robert, who is a sleeping partner in the firm wanted to inspect the books of accounts of the partnership firm due to certain allegations of financial impropriety by some of the partners. The other partners in the firm objected to the same and denied access to books of accounts. The action of the other partners is -----------.a)Not correct since Robert has right of access to books of accountsb)Valid since Robert is a sleeping partner who has no such rightsc)Valid since a partner has no right to access to access to books of accountsd)Valid since the reason cited by Robert is unacceptable.Correct answer is option 'A'. Can you explain this answer?.
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