GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following statements are appropriate in respect of partnership accounts?
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In the absence of any provision in the partnership agreement to the contrary, partners can charge interest as 6 % per annum on loans given by them to the partnership firm.
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A banking partnership firm cannot have more than 10 partnership.
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Both (a) and (b)
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An ordinary partnership firm can have not more than 50 partners.
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Explanation:
Detailed explanation-1: -A partnership firm has no Legal personality distinct from its partners. In a partnership, the profits of the firm should be distributed equally among all partners. In a partnership, the liability of partner is limited to the extent of their Capital Contribution.
Detailed explanation-2: -Answer and Explanation: The correct answer is C. A partnership firm’s life is restricted to the life of the partners. Eventually, when all the partners die, the partnership firm comes to an end as there is nobody left to look after the business.
Detailed explanation-3: -The incorrect statement is Registration of partnership is compulsory.
There is 1 question to complete.