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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;

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