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CSEET · Fundamentals of Accounting · Partnership and LLP Accounts

Under the Indian Partnership Act, 1932, a minor can be admitted to a firm in which of the following ways?

A minor cannot be a partner, but can be admitted to the benefits of partnership with the consent of all the partners for the time being. Majority consent is insufficient, and the minor is not personally liable for the firm's acts, only his share is.

  1. AAs a full partner with personal unlimited liability from the date of admission
  2. BTo the benefits of partnership, with the consent of all the partners for the time beingCorrect
  3. CTo the benefits of partnership, with the consent of the majority of the partners
  4. DAs a partner, provided the guardian signs the partnership deed

Explanation

A minor may not be a partner, but with the consent of all the partners for the time being he may be admitted to the benefits of partnership. Majority consent is not enough, so option C is wrong. The minor's share is liable for the firm's acts but he is not personally liable.

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