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The deed requires consent of all partners to sell firm assets. If an asset is sold without consent what accounting dispute arises?

Answer and explanation

Correct answer: Dispute over validity of sale and use of proceeds

Asset sale is a major decision and the deed may require consent. Unauthorized sale creates disputes about liability and adjustment of proceeds.

Related tags

Asset SaleConsentDeedPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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