📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    If a partner earns any personal profits from the

    business of the firm:
    A He shall account for 50% of it to the firm Correct Answer Incorrect Answer
    B He shall account for only his interest in the firm. Correct Answer Incorrect Answer
    C He shall account it back to the firm. Correct Answer Incorrect Answer
    D He shall not earn any personal profits of the firm, if earned he shall be expelled immediately. Correct Answer Incorrect Answer
    E None of the above. Correct Answer Incorrect Answer

    Solution

    As per s.16 of the Indian Partnership Act, 1932- Section16 PERSONAL PROFITS EARNED BY PARTNERS. Subject to the contract between the partners, - (a) if a partner derives any profits for himself from any transaction of the firm, or from the use of the property or business connection of the firm or the firm-name, he shall account for that profit and pay it to the firm;

    Practice Next
    More Administrative Interpretation and Maxims Questions
    ask-question