CSEET · Fundamentals of Accounting · Partnership and LLP Accounts
Under the Indian Partnership Act, 1932, a partner in a partnership at will who wishes to retire can do so by:
In a partnership at will, a partner may retire by giving written notice of his intention to retire to all the other partners. The Act requires no Registrar order, compensation payment or waiting for the financial year to end.
- AGiving written notice of his intention to retire to all the other partnersCorrect
- BObtaining an order from the Registrar of Firms
- CPaying compensation equal to his capital to the firm
- DWaiting until the next financial year ends
Explanation
Section 32(1)(c) of the Indian Partnership Act, 1932 allows a partner to retire from a partnership at will by giving written notice of his intention to all the other partners. No Registrar order, payment or year-end wait is needed. The other options are not conditions in the Act.
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