A and B are partners. A dies. B, instead of winding up the affairs of the partnership, retains all the…
Illustration (f) to section 88 states that "B must account to A's legal representative for the profits arising from A's share of the capital". The surviving partner stands…
Choose your answer
A and B are partners. A dies. B, instead of winding up the affairs of the partnership, retains all the assets in the business. Under section 88 of the Indian Trusts Act, 1882, to whom must B account for the profits arising from A's share of the capital?
Answer and explanation
Correct answer A
Illustration (f) to section 88 states that "B must account to A's legal representative for the profits arising from A's share of the capital". The surviving partner stands in a fiduciary position towards the deceased partner's estate, and section 88 makes him hold for it the advantage gained by using A's share. The dissolution does not free B from accounting.