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As per Section 37 of the Indian Partnership Act, 1932, the executors would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the deceased partner at ______% p.a.:
- a)7
- b)4
- c)6
- d)12
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
As per Section 37 of the Indian Partnership Act, 1932, the executors w...
37. Right of outgoing partner in certain cases to share subsequent profits.—Where any member of a firm has died or otherwise ceased to be a partner, and the surviving or continuing partners carry on the business of the firm with the property of the firm without any final settlement of accounts as between them and the outgoing partner or his estate, then, in the absence of a contract to the contrary, the outgoing partner or his estate is entitled at the option of himself or his representatives to such share of the profits made since he ceased to be a partner as may be attributable to the use of his share of the property of the firm or to interest at the rate of six per cent. per annum on the amount of his share in the property of the firm: Provided that whereby contract between the partners an option is given to surviving or continuing partners to purchase the interest of a deceased or outgoing partner, and that option is duly exercised, the estate of the deceased partner, or the outgoing partner or his estate, as the case may be, is not entitled to any further or other share of profits; but if any partner assuming to act in exercise of the option does not in all material respects comply with the terms thereof, he is liable to account under the foregoing provisions of this section.
Community Answer
As per Section 37 of the Indian Partnership Act, 1932, the executors w...
Explanation:
Section 37 of the Indian Partnership Act, 1932:
Section 37 of the Indian Partnership Act, 1932 deals with the rights of the executors or legal representatives of a deceased partner. According to this section, the executors or legal representatives of a deceased partner are entitled to receive from the remaining partners interest on the amount due to the deceased partner.
Interest Calculation:
The interest is calculated from the date of death of the partner till the date of payment on the final amount due to the deceased partner. The rate of interest is determined by the executors or legal representatives at their choice.
Rate of Interest:
In this question, the correct answer is option 'D', which means the executors or legal representatives would be entitled to the interest calculated at 12% per annum. This means that if the final amount due to the deceased partner is not paid immediately, the remaining partners would be required to pay interest at the rate of 12% per annum on the amount due.
Importance of Section 37:
Section 37 is important as it ensures that the executors or legal representatives of a deceased partner are compensated for the delay in receiving the final amount due to the deceased partner. It provides a fair and reasonable mechanism for calculating the interest on the amount due, thereby protecting the rights of the deceased partner's estate.
Conclusion:
Section 37 of the Indian Partnership Act, 1932 grants the executors or legal representatives of a deceased partner the right to receive interest on the amount due to the deceased partner. The rate of interest is determined by the executors or legal representatives at their choice. In this case, the correct answer is option 'D' which represents an interest rate of 12% per annum.
Section 37 of the Indian Partnership Act, 1932:
Section 37 of the Indian Partnership Act, 1932 deals with the rights of the executors or legal representatives of a deceased partner. According to this section, the executors or legal representatives of a deceased partner are entitled to receive from the remaining partners interest on the amount due to the deceased partner.
Interest Calculation:
The interest is calculated from the date of death of the partner till the date of payment on the final amount due to the deceased partner. The rate of interest is determined by the executors or legal representatives at their choice.
Rate of Interest:
In this question, the correct answer is option 'D', which means the executors or legal representatives would be entitled to the interest calculated at 12% per annum. This means that if the final amount due to the deceased partner is not paid immediately, the remaining partners would be required to pay interest at the rate of 12% per annum on the amount due.
Importance of Section 37:
Section 37 is important as it ensures that the executors or legal representatives of a deceased partner are compensated for the delay in receiving the final amount due to the deceased partner. It provides a fair and reasonable mechanism for calculating the interest on the amount due, thereby protecting the rights of the deceased partner's estate.
Conclusion:
Section 37 of the Indian Partnership Act, 1932 grants the executors or legal representatives of a deceased partner the right to receive interest on the amount due to the deceased partner. The rate of interest is determined by the executors or legal representatives at their choice. In this case, the correct answer is option 'D' which represents an interest rate of 12% per annum.
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As per Section 37 of the Indian Partnership Act, 1932, the executors would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the deceased partner at ______% p.a.:a)7b)4c)6d)12Correct answer is option 'D'. Can you explain this answer?
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As per Section 37 of the Indian Partnership Act, 1932, the executors would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the deceased partner at ______% p.a.:a)7b)4c)6d)12Correct 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 As per Section 37 of the Indian Partnership Act, 1932, the executors would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the deceased partner at ______% p.a.:a)7b)4c)6d)12Correct 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 As per Section 37 of the Indian Partnership Act, 1932, the executors would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the deceased partner at ______% p.a.:a)7b)4c)6d)12Correct answer is option 'D'. Can you explain this answer?.
As per Section 37 of the Indian Partnership Act, 1932, the executors would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the deceased partner at ______% p.a.:a)7b)4c)6d)12Correct 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 As per Section 37 of the Indian Partnership Act, 1932, the executors would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the deceased partner at ______% p.a.:a)7b)4c)6d)12Correct 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 As per Section 37 of the Indian Partnership Act, 1932, the executors would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the deceased partner at ______% p.a.:a)7b)4c)6d)12Correct answer is option 'D'. Can you explain this answer?.
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As per Section 37 of the Indian Partnership Act, 1932, the executors would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the deceased partner at ______% p.a.:a)7b)4c)6d)12Correct answer is option 'D'. Can you explain this answer?, a detailed solution for As per Section 37 of the Indian Partnership Act, 1932, the executors would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the deceased partner at ______% p.a.:a)7b)4c)6d)12Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of As per Section 37 of the Indian Partnership Act, 1932, the executors would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the deceased partner at ______% p.a.:a)7b)4c)6d)12Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
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