Accountancy

Fundamental

Questions Bank

  • Section 4 of Partnership Act, states partnership is the relation between person who have agreed to share the profit of a business carried on all by or any of them acting for all.
    2018-02-12 17:06:24
  • Partnership is a separate legal entity from accounting point of view, but not from legal point of view.
    2018-02-12 17:06:06
  • Features of Partnership are (i) Agreement, (ii) Business, (iii) Mutual Agency, (iv) Sharing of Profit, (v) Liability of Partnership, (vi) Two or more person, (vii) Registration
    2018-02-12 17:04:59
  • Rights of Partner are (i) To Inspect Books of Account, (ii) To take part in Management, (iii) Share Profit & Loss, (iv) Not allow admission of New Partner, (v) Conduct the affairs of business.
    2018-02-12 17:04:30
  • Duties of Partners are (i) Carry Business, (ii) Hold and use property of firm, (iii) Devote Time, (iv) Act within Authority, (v) Indemnify for the loss caused by his wilful neglect or any breach of agreement.
    2018-02-12 17:03:57
  • Types of Partners are (i) Active Partner, (ii) Dormant or Sleeping Partner, (iii) Nominal Partner, (iv) Partner by Estoppel, (v) Partner by Holding out.
    2018-02-12 17:03:28
  • Provision in Absence of Parntership Deed (i) P&L shared Equally, (ii) No Interest on Capital, (iii) No Interest on Drawing, (iv) No Salary, (v) Interest @ 6% pa on Loans and Advances.
    2018-02-12 17:03:13
  • Profit and Loss Appropriation A/c is prepared by the partnership firm to carry out adjustments of partner’s rights and obligations such as Interest on capital, Interest on drawings, Partner’s salary, Partner’s commission, Partner’s share in profits.
    2018-02-12 17:02:24

  • 2018-02-12 17:01:52

Questions Bank -

Ans. Section 4 of the Indian Partnership Act, 1932, partnership may be defined as "the relationship between two or more persons who have agreed to share the profits of the business carried on by all or any of them acting for all".

Ans. The two essential elements of a partnership are
(i) Agreement.
(ii) Sharing of profits.

Ans. The persons who have entered into a partnership with one another to share profits and losses are individally called partners.

Ans. The persons who have entered into a partnership are collectively termed as a firm.

Ans. The status of partners towards each other are that they are mutual agents.

Ans. The government has prescribed the maximum number of partner is 50 vide Rule 10 of the Companies (Miscellaneous) Rule 2014.

Ans. The minimum number of partners in a firm is 'Two'.

Ans. No, the partnership firm does not possess any separate legal entity from its member.

Ans. No, it is not compulsory to have partnership deed in writing.



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