Chapter 12, Problem 5DQ

To determine

Concept Introduction:

Partnership:

Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Death of a partner:

If the partnership contract does not mention the effect of the death of one or more partners, then such partnership dissolves at the death of one or more partners of the firm. However, the partnership may be reconstituted with new or existing partners.

To discuss:

The effect of the death of a partner and right of his successor.