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The reconstitution of the firm takes place in case of
- a)admission of a partner
- b)retirement of a partner
- c)expulsion or death of a partner
- d)All of the above
Correct answer is option 'D'. Can you explain this answer?
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The reconstitution of the firm takes place in case ofa)admission of a ...
Reconstitution of Firm
Reconstitution of a firm refers to any change in the existing partnership agreement that leads to a change in the partnership structure. It can occur due to various reasons, such as the admission of a new partner, retirement of an existing partner, expulsion or death of a partner.
Admission of a Partner
When a new partner is admitted to a partnership firm, it leads to a change in the existing partnership agreement. The rights, duties and profit sharing ratio of the partners may be altered to accommodate the new partner.
Retirement of a Partner
When a partner retires from a partnership firm, it leads to a reconstitution of the firm. The existing partnership agreement needs to be amended to reflect the changes in the partnership structure. The retired partner's share of profits, debts and liabilities need to be settled.
Expulsion or Death of a Partner
If a partner is expelled from a partnership firm or dies, it leads to a reconstitution of the firm. The remaining partners need to amend the partnership agreement to reflect the changes in the partnership structure. The expelled or deceased partner's share of profits, debts and liabilities need to be settled.
All of the Above
Thus, the reconstitution of a firm takes place in case of admission of a partner, retirement of a partner, expulsion or death of a partner. All of these events lead to changes in the existing partnership agreement and require the partners to restructure the partnership accordingly.
Reconstitution of a firm refers to any change in the existing partnership agreement that leads to a change in the partnership structure. It can occur due to various reasons, such as the admission of a new partner, retirement of an existing partner, expulsion or death of a partner.
Admission of a Partner
When a new partner is admitted to a partnership firm, it leads to a change in the existing partnership agreement. The rights, duties and profit sharing ratio of the partners may be altered to accommodate the new partner.
Retirement of a Partner
When a partner retires from a partnership firm, it leads to a reconstitution of the firm. The existing partnership agreement needs to be amended to reflect the changes in the partnership structure. The retired partner's share of profits, debts and liabilities need to be settled.
Expulsion or Death of a Partner
If a partner is expelled from a partnership firm or dies, it leads to a reconstitution of the firm. The remaining partners need to amend the partnership agreement to reflect the changes in the partnership structure. The expelled or deceased partner's share of profits, debts and liabilities need to be settled.
All of the Above
Thus, the reconstitution of a firm takes place in case of admission of a partner, retirement of a partner, expulsion or death of a partner. All of these events lead to changes in the existing partnership agreement and require the partners to restructure the partnership accordingly.
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The reconstitution of the firm takes place in case ofa)admission of a ...
Its simple, when the partner is admitted or retires or dies the other partners have to change their p&l account, balance sheet, partnership deed etc, hence reconstitution (Forming again) of the firm takes place in case of all of the above.
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The reconstitution of the firm takes place in case ofa)admission of a partnerb)retirement of a partnerc)expulsion or death of a partnerd)All of the aboveCorrect answer is option 'D'. Can you explain this answer?
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The reconstitution of the firm takes place in case ofa)admission of a partnerb)retirement of a partnerc)expulsion or death of a partnerd)All of the aboveCorrect answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The reconstitution of the firm takes place in case ofa)admission of a partnerb)retirement of a partnerc)expulsion or death of a partnerd)All of the aboveCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The reconstitution of the firm takes place in case ofa)admission of a partnerb)retirement of a partnerc)expulsion or death of a partnerd)All of the aboveCorrect answer is option 'D'. Can you explain this answer?.
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