Which of the following facts are related to modes of reconstitution of a partnership firm.(A) Admission of a new partner(B) Dissolution of a partnership firm(C) Death of a partner(D) Change in the profit sharing ratio among the existing partners(E) Retirement of a partnerChoose the correct answer from the options given below:
- A(A), (B), (C) and (D) Only
- B(A), (C), (D) and (E) Only
- C(A), (B), (D) and (E) Only
- D(B), (C), (D) and (E) Only
Solution & Step-by-step Explanation
Reconstitution of a partnership firm refers to a change in the existing economic relationship among partners without ending the partnership business. Modes include:Change in profit-sharing ratio among existing partners (D)Admission of a new partner (A)Retirement of an existing partner (E)Death of a partner (C)Dissolution of the partnership firm (B) leads to the complete closure of the firm's business, which is distinct from mere reconstitution. Thus, the modes are (A), (C), (D), and (E).