When there is a change in the current partners' association that results in ending the existingagreement and initiate a formation of a new agreement is known as
A)Revaluation of Partnership
B)Reconstitution of Partnership
C)Realisation of Partnership
D)None of the Above

Question

Quizplus · Accepted Answer

Reconstitution of Partnership refers to the process where there is a change in the existing agreement among partners, leading to the end of the current partnership arrangement and the beginning of a new one. This can happen due to various reasons such as the admission of a new partner, retirement of an existing partner, death of a partner, or a change in the profit-sharing ratio among the current partners.

When There Is a Change in the Current Partners' Association