Question

What is meant by Reconstitution of partnership? (Answer in one sentence)

Answer 1

Reconstitution of a partnership refers to a situation when there is a change in the existing partnership agreement. ... Thus, the cases such as admission ofa new partner, death / retirement / insolvency of a partner, change in profit sharing ratio, etc., leads to a reconstitution of partnership

Answer 2

Reconstitution of partnership refers to any change in the overall partnership firm.

• This change could be anything like changing the company's structure, changing the profit-sharing ratio, admitting or exiting a partner, changing the business's reconstitution, changing the registered address, etc.
• In the case of reconstitution of partnership, a revaluation Report is designed to document the rise or decrease in the market value of the assets and liabilities and any gains and losses associated with this increase or decrease is shared among the company's old partners.