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CSEET · Fundamentals of Accounting · Partnership and LLP Accounts

Under the Indian Partnership Act, 1932, a minor can be treated in which of the following ways in relation to an existing firm?

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, though his share in the firm is liable for its acts.

  1. AAdmitted as a full partner with personal liability for the firm's debts
  2. BAdmitted to the benefits of partnership with the consent of all the partners for the time beingCorrect
  3. CAdmitted to the benefits of partnership with the consent of the majority of partners
  4. DAdmitted as a partner only if the minor's guardian signs the firm's accounts

Explanation

Section 30(1) says 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 the majority option is wrong. A minor is also not personally liable for the firm's acts.

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