New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    According to Indian Partnership Act When a partner

    transfers their interest in the firm, the transferee is entitled to______________________
    A Interfere in the conduct of the business Correct Answer Incorrect Answer
    B Require accounts and inspect the books of the firm Correct Answer Incorrect Answer
    C Receive the share of profits of the transferring partner Correct Answer Incorrect Answer
    D Both a and b Correct Answer Incorrect Answer

    Solution

    Receive the share of profits of the transferring partner, Explanation: Section 29: A transfer by a partner of his interest in the firm, either absolute or by mortgage, or by the creation by him of a charge on such interest, does not entitle the transferee, during the continuance of the firm, to interfere in the conduct of the business, or to require accounts, or to inspect the books of the firm, but entitles the transferee only to receive the share of profits of the transferring partner, and the transferee shall accept the account of profits agreed to by the partners.

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