CSEET · Fundamentals of Accounting · Partnership and LLP Accounts
A, B and C run a partnership at will. A gives written notice to B and C of his intention to dissolve the firm, but mentions no date of dissolution in the notice. From which date is the firm dissolved?
The firm is dissolved from the date the notice is communicated. Under Section 43 of the Indian Partnership Act, 1932, in a partnership at will any partner may give written notice to all others, and if no date is mentioned, dissolution takes effect on communication.
- AFrom the date the notice was communicatedCorrect
- BFrom the end of the accounting year
- CFrom the date the Registrar records it
- DFrom the date B and C consent
Explanation
Section 43(2) says the firm is dissolved from the date mentioned in the notice or, if none is mentioned, from the date of communication of the notice. Consent of the other partners is not needed, so that option is wrong.
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