Which of the following will lead to the Reconstitution of a partnership Firm?(A) Admission of a new partner(B) Change in the profit sharing ratio among the existing partners(C) Retirement of an existing partner(D) Death of a partnerChoose the correct answer from the options given below:
- A(A), (C) and (D) only
- B(A), (B) and (D) only
- C(A), (B), (C) and (D)
- D(B), (C) and (D) only
Solution & Step-by-step Explanation
Reconstitution of a partnership firm refers to any change in the existing legal relationship configuration among partners without ending the business. This occurs in all the following scenarios:(A) Admission of a new partner(B) Change in mutual profit-sharing ratio among existing partners(C) Retirement of an existing partner(D) Death of a partnerHence, all four events (A), (B), (C), and (D) cause a reconstitution.