Partnership

Accounting

Easy

common

Reconstitution of a partnership firm takes place when:

Firm is dissolved

There is a change in profit sharing ratio among partners

Firm is sold to another firm

Assets are sold at book value

✅ Correct Option: 2

Reconstitution means the existing agreement ends and a new one comes into force while the firm continues. It occurs on a change in profit sharing ratio, admission, retirement or death of a partner. Dissolution or sale of the firm ends the business itself, so it is not reconstitution.

2026: 29 May Shift 2

Varun, Vansh and Vinay are partners sharing profits in the ratio of 5:3:2. They decided to share future profits in the ratio of 2:3:5. What will be the accounting treatment of Workmen Compensation Reserve existing in the balance sheet on that date when further information is not available.

2025: 22 May Shift 1

The Central Government has prescribed the maximum number of partners in a firm to be .......

2025: 27 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Bank (fresh capital introduced)	(I) Debit side of Partner's Current Account
(B) Interest on drawings	(II) Debit side of Partner's Capital Account
(C) Bank (permanent withdrawal of capital)	(III) Credit side of Partner's Current Account
(D) Commission	(IV) Credit side of Partner's Capital Account

Choose the correct answer from the options given below:

2025: 27 May Shift 2

The Profit and Loss Appropriation Account is merely an extension of the Profit and Loss Account of the firm,

Which, among the following, is not shown in the Profit and Loss Appropriation Account?

2025: 30 May Shift 1

Which among the following is NOT true about the Partnership?

2025: 27 May Shift 1

Which of the following is not included in the Contents of the Partnership Deed-

Reconstitution of a partnership firm takes place when:

Solution

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