Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)- USHA Publication Class +2 – Solution

What is Reconstitution of a Partnership Firm: –

Reconstitution of a Partnership Firm means when with the consent of all partners they make some fundamentals changes in the Partnership deed. It may when the partners want to change their profit sharing ratio or any partner want to increase or decrease his investment as well as involvement in the business. And in the other condition like an admission of a new partner(s), the retirement/death/insolvency of existing partner(s). 

When we need to Reconstitution of a Partnership Firm: –

In the following situation, the firm needs to reconstitution of a Partnership firm: –

1. The admission of New Partner(s)
2. When there is a change in the Profit Sharing Ratio between existing partners
3. The Retirement of one or more from the existing Partners
4. In the case of Death or Insolvency of Partner(s)

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Reconstitution of a Partnership Firm – Explained

Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)- USHA Publication Class +2 – Solution

Question wise solution of the all Questions of Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)- USHA Publication Class +2 – Solutions are shown below: –