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CSEET · Fundamentals of Accounting · Partnership and LLP Accounts

Under the Indian Partnership Act, 1932, a minor who has been admitted to the benefits of partnership fails to give any public notice within six months of attaining majority (or of getting knowledge of admission, whichever is later). What is the consequence?

Under section 30 of the Indian Partnership Act, a minor who gives no public notice within six months of attaining majority, or of knowing of his admission if later, becomes a partner when the six months expire, and becomes personally liable for firm acts done since admission.

  1. AHe becomes a partner in the firm on expiry of the six monthsCorrect
  2. BThe firm is dissolved automatically
  3. CHe ceases to have any share in the firm
  4. DHe remains a minor beneficiary indefinitely

Explanation

Section 30 provides that if he fails to give notice, he becomes a partner on expiry of the six months. He then becomes personally liable for acts of the firm done since admission to the benefits. Ceasing to have a share is wrong as it applies only if he elects not to become a partner.

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