Tag: meaning of dissolution of partnership firm

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Multiple choice business organisation and correspondence partnership 4 - dissolution of a partnership firm meaning of dissolution of partnership firm modes of dissolution of firm dissolution of firm difference between realisation account and revaluation account payment of firm's debts and separate debts, realisation of assets and liabilities

Application for dissolution of a firm on the ground of permanent incapacity of a partner can be made by ________.

  1. Any partner

  2. Any partner other than who is of permanent incapacity

  3. Police officer

  4. CBI
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

If a partner has become permanently incapable of performing his duties as a partner then another partner can sue for dissolution of firm. Incapable of performing his duties can be due to any reason like going abroad for long time or imprisonment of partner for a long time. As a partner would not be able to perform his duties, the court may order for dissolution. 

Multiple choice business organisation and correspondence partnership 4 - dissolution of a partnership firm meaning of dissolution of partnership firm modes of dissolution of firm dissolution of firm difference between realisation account and revaluation account payment of firm's debts and separate debts, realisation of assets and liabilities

Which of these statement is not correct one?

  1. A Joint Hindu Family is not

  2. As per Income-tax Act, Joint Hindu Family is distinct from its member and is assessed separately

  3. Joint Hindu family business arise by operation of law and not by contract

  4. A joint Hindu Family is dissloved on death of a coparcener
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A joint Hindu Family is a type of organisation in which all the members of a Hindu Undivided Family manage and control the business under the direction of head of the family. In this all the members become coparcener. It comes into existence by operation of Hindu law.  The existence of Joint Hindu Family is not affected by the death of a coparcener because remaining coparcener can continue the business. 

Multiple choice business organisation and correspondence partnership 4 - dissolution of a partnership firm meaning of dissolution of partnership firm modes of dissolution of firm dissolution of firm difference between realisation account and revaluation account payment of firm's debts and separate debts, realisation of assets and liabilities

Court may order dissolution of a firm on any other grounds which  _______ just and equitabe .

  1. it considers

  2. are prescribed in the act as

  3. the partners considers

  4. the registrar of firms considers
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Dissolution can be done by suing the other partners and bringing the case to the court. According to Section 44 , if court finds it just and equitable then court may order for dissolution. Reason could be insolvency of a partner, Death of partner, when a partner becomes of unsound mind etc. 

Multiple choice business organisation and correspondence partnership 4 - dissolution of a partnership firm meaning of dissolution of partnership firm modes of dissolution of firm dissolution of firm difference between realisation account and revaluation account payment of firm's debts and separate debts, realisation of assets and liabilities

If no public notice of dissolution of a firm is given :

  1. All the partners continue to remain liable to third party

  2. The firm is adjudged defaulter

  3. The firm stand dissolved

  4. Still the firm is not liable to third party
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Section 72 lays down the manner and the cases in which the public notice of certain matter relating to partnership firm is to be given. According to this section, If on dissolution of a registered firm a public notice is not given, the partners shall continue to be liable to third parties for any act done by any of them which would have been an act of the firm done before dissolution.  

Multiple choice business organisation and correspondence partnership 4 - dissolution of a partnership firm meaning of dissolution of partnership firm modes of dissolution of firm dissolution of firm difference between realisation account and revaluation account payment of firm's debts and separate debts, realisation of assets and liabilities

In which of these cases a partner give notice for dissolution of partnership? 

  1. If he has tacit support of at least 2/3rd support of other partners

  2. In case of particular partnership

  3. In case of Partnership at will

  4. Not permitted under any circumstances
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In case  of partnership at will a partner can dissolve it by giving notice of dissolution to other partners. The notice should be communicated to other partners as mentioned in agreement and if not mentioned then mode of communication should be reasonable. The notice should be clear and should not be confusing. 

Multiple choice business organisation and correspondence partnership 4 - dissolution of a partnership firm meaning of dissolution of partnership firm modes of dissolution of firm dissolution of firm difference between realisation account and revaluation account payment of firm's debts and separate debts, realisation of assets and liabilities

Which of these cannot be cause of dissolution of a firm?

  1. Ill health of partner

  2. Insanity

  3. Misconduct

  4. Transfer of interest
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

According to Section 44 of the Indian Partnership Act, Insanity of a partner and Misconduct by partner can be cause of dissolution of firm by court. If a partner has transferred his interest to third parties, other partners may apply to the firm to dissolve the firm. But ill health of a partner can not be the cause of dissolution of a firm because ill health is temporary. 

Multiple choice business organisation and correspondence partnership 4 - dissolution of a partnership firm meaning of dissolution of partnership firm modes of dissolution of firm dissolution of firm difference between realisation account and revaluation account payment of firm's debts and separate debts, realisation of assets and liabilities

If no public notice is given then :

  1. Minor will be demand to have become a full fledged partner

  2. Liability of partner continues in case of expulsion, retirement or dissolution of the firm

  3. Both

  4. None
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Section 72 lays down the manner and the cases in which the public notice of certain matter relating to partnership firm is to be given. if no public notice is given then the partners continue to be liable to third parties in case of dissolution, retirement and expulsion. Minor partner within six months of attaining eighteen years of age choose to become or not to become partner and specify the same by way of public notice. If no public notice is given then minor deemed to have become a partner of the firm. 

Multiple choice business organisation and correspondence partnership 4 - dissolution of a partnership firm meaning of dissolution of partnership firm modes of dissolution of firm dissolution of firm difference between realisation account and revaluation account payment of firm's debts and separate debts, realisation of assets and liabilities

A firm is not liable for the act of an insolvent partner ____________ .

  1. After the date of the order of adjudication

  2. All acts done before the order of his adjudication

  3. If due notice thereof is given

  4. If so ordered by the court
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
  1. When 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 dissolved. 
    2. 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. 
Multiple choice business organisation and correspondence partnership 4 - dissolution of a partnership firm meaning of dissolution of partnership firm modes of dissolution of firm dissolution of firm difference between realisation account and revaluation account payment of firm's debts and separate debts, realisation of assets and liabilities

Which of the following duties can be varied by an agreement between the partners?

  1. Duty to work without remuneration.

  2. Duty to contribute to losses.

  3. Duty to indemnify for losses caused due to willful negligence.

  4. All the three.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Partners can determine their mutual rights and duties by an agreement called partnership deed. Partnership Deed is an important part of partnership. It clearly states the duties of partners. Any change in duties such as duty to work without remuneration, duty to contribute to losses, duty to indemnify for losses caused due to willful negligence can be made by making changes in partnership deed.

Multiple choice business organisation and correspondence partnership 4 - dissolution of a partnership firm meaning of dissolution of partnership firm modes of dissolution of firm dissolution of firm difference between realisation account and revaluation account payment of firm's debts and separate debts, realisation of assets and liabilities

Which of the following enactments insist for a registered agreement of partnership? 

  1. the Indian Partnership Act, 1932

  2. the Indian Contract Act, 1872

  3. the Indian Registration Act, 1908

  4. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Registration of partnership firm is not compulsory but partners prefer to get it registered. Because if a partnership firm is not registered it can not file a suit against any third party. No partner can file a suit against any other partner. The firm can not file a suit against any partner. But third party can file a suit against firm.