Where a partner in a firm is adjudicated an insolvent, the said partner

Which of the following are the consequences in case of insolvency of partner?
1. The partner adjudicated as insolvent ceases to be a partner.
2. He ceases on the date on which the order of adjudication is made.
3. The firm is dissolved on the date of the order.
4. The estate of the insolvent partner is liable for any act of the firm after the date of the order of adjudication.
5. The firm can be held liable for any acts of the insolvent partners after the date of the order of adjudication.
Select the correct answer:

A

Only 5

B

Both 4 and 5

C

3, 4 and 5

D

1, 2 and 3

Where a partner in a firm is adjudicated an insolvent, he ceases to be a partner

A

On the date on which the petition for insolvency was filed

B

On the date on which the order of adjudication is made

C

On the date fixed by the court

D

Either (B) or (C)

A partnership firm is . . . . . . . by acts of a partner who has been adjudicated insolvent

A

Not bound

B

Bound

C

Independent

D

Dependent

A minor who has been admitted to the benefits of the firm, on an application to have the partners of the firm adjudicated as insolvent

A

Can be adjudicated as insolvent and his share seized by the receiver

B

Can be adjudicated as insolvent but his share cannot be seized by the receiver

C

Cannot be adjudicated as insolvent but his share can be seized by the receiver

D

Cannot be adjudicated as insolvent nor his share can be seized by the receiver

Which of the following are correct regarding rights of partners?
1. A partner has the right to allow the admission of a new partner.
2. Every partner has a right to take part in the management of business.
3. Every partner has a joint ownership of partnership property.
4. Every partner has a right to share the profit not the losses with other partners.
5. Every partner has a right to inspect the books of account and have a copy of the same.
6. In case of emergency, a partner has a right to act as a man of prudence.
Select the correct answer:

A

1, 2, 3, 4

B

2, 3, 4, 6

C

3, 4, 5, 6

D

2, 3, 5, 6

The Propositions are:
(1) Where a partner of a professional business partnership borrows money in the usual and regular course of business stating that the money is to be used for partnership business but misappropriates it, the other partners shall be liable.
(2) Where money has been borrowed by a partner without authority, but has been applied to the legitimate business needs of the firm, the firm is liable.
(3) Where the act is within the scope of the implied authority of a partner, but it has been done by him, to the knowledge of the third party, not for the firm but for his own purposes, the firm is liable.
Which of the following is true in accordance with Indian Partnership Act, 1932 as to the aforesaid propositions?

A

(1) is correct, (2) and (3) are incorrect

B

(1) and (2) are correct, (3) is incorrect

C

(1), (2) and (3), all are correct

D

(2) and (3) are correct, (1) is incorrect

E

None of these

A, B and C are partners in a firm. C retires and X admitted as a new partner. The firm did not give a public notice on the change but continued its business in its old firm name. Z, a customer of the firm, deals with the firm after the change and the firm becomes indebted to him:

A

Z can sue A, B, C and X

B

Z can sue A, B and C

C

Z can sue either A, B and C, or A, B and X

D

Z can sue A and B only

X' and 'Y' jointly take a loan, from 'Z' with promise to repay the loan amount with interest within two years. Soon after taking the loan 'X' is declared as an insolvent and remains insolvent till the date of repayment of loan. 'Y' also fails to repay the loan. 'X' on account of his status as insolvent enjoys immunity from legal proceedings. In these circumstances:

A

Z' can in law institute a suit for recovery of, only 50% of the outstanding from 'Y'

B

Z' is entitled in law to sue 'Y' alone for recovery of the entire outstanding amount

C

Z' is not entitled to sue 'Y' also for recovery of loan amount till the order of insolvency of 'X' ceases to operate

D

Z' is entitled in law to sue 'Y' for 50% of the principal amount due and the entire interest outstanding

When a transferring partner ceases to be a partner in the firm or where the firm comes, to be dissolved, the transferee of the partner's interest in the firm is entitled to

A

Receive the share of the assets to which the selling partner was entitled

B

An account from the date of dissolution

C

Both (A) and (B)

D

Only (A) and not (B)

Every partner is jointly and severally liable for all acts of the firm. However, a minor can be admitted to the benefits of the firm. Liability of a partner is unlimited and he is personally liable for the acts of the firm. The liability of the minor in case of the acts of the firm is

A

Personally liable for such acts

B

Not at all liable for such acts

C

Not personally liable, it is only his share which is liable for the acts of the firm

D

Liable to the extent as it told by other partners

Where a partner in a firm is adjudicated an insolvent, the said partner

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