List any two situations which may result in the reconstitution of a partnership firm.
Solution:
Situations which may result in the reconstitution of a partnership firm:
1. Admission of new partner: When a new partner is admitted with the consent of all partners, reconstitution of existing partnership firm takes place. New partnership firm is constituted.
2. Retirement of a partner: When one or more partners decides to leave the firm due to any other reason and the remaining partner continues to do the business of the firm, there arises a situation of retirement of a partner.
Situations which may result in the reconstitution of a partnership firm:
1. Admission of new partner: When a new partner is admitted with the consent of all partners, reconstitution of existing partnership firm takes place. New partnership firm is constituted.
2. Retirement of a partner: When one or more partners decides to leave the firm due to any other reason and the remaining partner continues to do the business of the firm, there arises a situation of retirement of a partner.