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Gupta and Sharma were partners in a firm. They wanted to admit five more members to the firm. List any two categories of individuals other than minors who cannot be admitted by them. - Accountancy

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Gupta and Sharma were partners in a firm. They wanted to admit five more members to the firm. List any two categories of individuals other than minors who cannot be admitted by them.

Gupta and Sharma were partners in a firm. They wanted to admit two more members to the firm. List the categories of individuals other than minors who cannot be admitted by them.

Short Answer
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Solution

The following persons, other than minors, cannot be admitted to a partnership.

  1. Persons of unsound mind: Individuals who are not mentally capable of understanding the nature and consequences of their actions cannot be admitted as partners.
  2. Persons disqualified by any law: Any individual who is disqualified from being a partner by any law (such as a convicted person or an undischarged insolvent) cannot be admitted as a partner.
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Chapter 1: Accounting for Partnership Firms - Fundamentals - SHORT ANSWER QUESTIONS [Page 1.127]
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