Question : Which of the following statements is true?
Option 1: A retiring partner remains liable for all the acts of the firm up to the date of his retirement.
Option 2: A retiring partner may be discharged from his liability by an agreement between himself, third party and the continuing partners.
Option 3: A retiring partner also continues to be liable to third parties for the acts of the firm even after his retirement until a public notice of his retirement is given
Option 4: All of the above
Correct Answer: All of the above
Solution : Answer = All of the above
All the statements are true regarding a retiring partner's liability. A retiring partner remains liable for all firm acts until retirement. Discharge from liability can occur through an agreement involving the retiring partner, third parties, and continuing partners. Even after retirement, the retiring partner is liable until public notice is given. Hence, the correct option is 4.
Question : Choose the correct journal entry If the due amount is paid to the retiring partner in lump sum on the date of retirement
Question : Upon partner retirement,Goodwill will be credited to the capital account of -
Question : If retiring partner's Capital Account after adjustments shows 'Debit Balance', that much amount is receivable from the retiring partner. The entry is:
Question : A partnership firm is compulsorily dissolved:
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