alleryStart learning →Partnership firms in India are governed by which statute?
AThe Indian Partnership Act, 1932
BThe Indian Companies Act, 2013
CThe Limited Liability Act, 2008
DThe Indian Contract Act, 1872
Answer & Solution
Correct answer: A. The Indian Partnership Act, 1932
1. A partnership firm is formed when two or more persons agree to carry on a business together.
2. The textbook states that in India partnership firms are governed by the Indian Partnership Act, 1932.
3. Registration of a partnership firm under that Act is optional rather than compulsory, though registration brings benefits.
4. The Limited Liability Partnership Act, 2008 governs LLPs instead, and the book notes that the 1932 Act does not apply to an LLP.
_Source: TN HSC Class 12 Accountancy (Samacheer Kalvi, Govt of Tamil Nadu), Unit 3 "Accounts of Partnership Firms - Fundamentals", §3.1_
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