The partnership means when two or more than two persons are agreed to do business together and share the profits/losses of the business in an equal or already specified ratio. In the case of firm reconstitution, we have Change in Profit-Sharing Ratio Among the Existing Partners as per the deal between the partners.
“Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all”
-Section 4 of the Indian Partnership Act, 1932
Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners – Solution
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