BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Detailed explanation-1: -Hence, if a firm uses the property of a partner for its purposes, it does not make it a partnership property unless that was the real intention. At any time, the partners may agree to convert the property of a partner or partners into partnership property.
Detailed explanation-2: -The High Court of Andhra Pradesh held that to become a property of the firm, such property must have been brought into the stock of the firm by the partners originally, during the formation of the firm or was subsequently acquired by purchase or any other means, in the course of business of the firm.
Detailed explanation-3: -The property of the firm as envisaged in Section 14 of the Partnership Act is a part of the assets of the firm. In law the joint effects of a partnership firm belong to a firm and a partner has no individual property in specific assets of the firm and has no exclusive right to possess or use the partnership property.
Detailed explanation-4: -Detailed Solution. Any firm which earns normal profit has no goodwill is true in the case of Partnership.
Detailed explanation-5: -The property belonging to the firm canot be sold by the partners of the firm.