Where the money received from a third party by the firm, in the ordinary course of its business, is…
Under the Indian Partnership Act, 1932 (Section 27), where money received from a third party in the ordinary course of the firm's business is misapplied by a partner, the…
Choose your answer
Where the money received from a third party by the firm, in the ordinary course of its business, is misapplied by one of the partners to his own use, then the
Answer and explanation
Correct answer C
Under the Indian Partnership Act, 1932 (Section 27), where money received from a third party in the ordinary course of the firm's business is misapplied by a partner, the "Firm is liable for the same"; it is not the case that the "Defaulting partner alone is liable for the same".
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