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

    Question

    If a partner earns some profit for himself from the

    business of the firm?
    A He is entitled to such profit. Correct Answer Incorrect Answer
    B He is not entitled to such profit. Correct Answer Incorrect Answer
    C It is an offence. Correct Answer Incorrect Answer
    D He shall be accountable for it to the firm. Correct Answer Incorrect Answer

    Solution

    As per 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 ; (b) if a partner carries on any business of the same nature as and competing with that of the firm, he shall account for and pay to the firm all profits made by him in that business.  

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