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AP Intermediate 2nd Year Accounting for Partnership Firms: Retirement and Death of a Partner — practice questions

Explore 7 free Accounting for Partnership Firms: Retirement and Death of a Partner questions in AP Intermediate 2nd Year Accountancy. Open each question or exercise to read its content, reference answers and available explanation.

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Accounting for Partnership Firms: Retirement and Death of a Partner questions and exercises with answers

Showing questions 1–7 of 7.

Partnership in India is governed by theRead the answer and worked solution →Partnership is defined as the relation between persons who have agreed to share the ___ of a businessRead the answer and worked solution →In the absence of a partnership deed, profits and losses are sharedRead the answer and worked solution →In the absence of a deed, interest on a partner's loan to the firm is allowed atRead the answer and worked solution →In the absence of a partnership deed, which of these is NOT allowed?Read the answer and worked solution →The maximum number of partners in a firm (per Companies Act 2013 rules) isRead the answer and worked solution →The account prepared to distribute profit among partners is theRead the answer and worked solution →

Worked practice questions

Partnership in India is governed by the

  1. Companies Act, 2013
  2. Indian Partnership Act, 1932
  3. Sale of Goods Act, 1930
  4. Contract Act, 1872
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Correct answer: B. Indian Partnership Act, 1932

Partnerships are governed by the Indian Partnership Act, 1932.

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Partnership is defined as the relation between persons who have agreed to share the ___ of a business

  1. profits
  2. assets
  3. liabilities
  4. capital
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Correct answer: A. profits

Sec 4: partnership is the relation between persons who agreed to share the profits of a business carried on by all or any of them acting for all.

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In the absence of a partnership deed, profits and losses are shared

  1. equally
  2. in time ratio
  3. as per seniority
  4. in capital ratio
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Correct answer: A. equally

Without a deed, the Act mandates equal sharing of profits and losses regardless of capital contributed.

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Financial Accounting & DebenturesAnalysis of Financial StatementsCash Flow StatementPartnership AccountsFinancial Statements of a CompanyAccounting for Share CapitalAccounting for Partnership Firms: Goodwill