Reconstitution of a Partnership Firm – Admission of a Partner · Class 12 · CBSE · Commerce Accountancy
When a new partner is admitted, the existing partnership agreement comes to an end, and a new agreement comes into existence. This process is known a…
Practice question from Reconstitution of a Partnership Firm – Admission of a Partner (Class 12 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
easy · MCQ · Q-FBC83A
When a new partner is admitted, the existing partnership agreement comes to an end, and a new agreement comes into existence. This process is known as:
- A.Dissolution of partnership firm
- B.Reconstitution of partnership firmCorrect answer
- C.Amalgamation of partnership firm
- D.Liquidation of partnership firm
Solution
Admission of a new partner results in the termination of the old partnership agreement and the creation of a new one, which is termed as the reconstitution of a partnership firm. The firm itself does not dissolve.
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