alleryStart learning →According to the textbook, the maximum number of partners in a partnership firm is:
ATen partners in all
BTwenty partners in all
COne hundred partners
DFifty partners in all
Answer & Solution
Correct answer: D. Fifty partners in all
1. The Indian Partnership Act, 1932 does not itself prescribe a maximum number of partners.
2. Section 464(1) of the Indian Companies Act, 2013 sets an outer ceiling, providing that the prescribed number shall not exceed one hundred.
3. Rule 10 of the Companies (Miscellaneous) Rules 2014 then fixes the actual limit at fifty.
4. The textbook therefore concludes that the maximum number of partners in a partnership firm is fifty, with a minimum of two.
_Source: TN HSC Class 12 Accountancy (Samacheer Kalvi, Govt of Tamil Nadu), Unit 3 "Accounts of Partnership Firms - Fundamentals", §3.2.2_
Keep practising Accounts of Partnership Firms - Fundamentals
Browse all Accounts of Partnership Firms - Fundamentals questions for Tamil Nadu HSC (Class 12), or explore more Accountancy topics.
Related questions
A partner withdraws Rs 4,000 at the end of each quarter. Interest on drawings is 6 per cenA partner withdraws Rs 1,000 at the beginning of every month. Interest on drawings is 5 peWhen computing interest on capital, the balance in a partner's current account is:Under the fluctuating capital method, the share of profit credited to a partner is recordeIn the profit and loss appropriation account, interest on partners' drawings appears on thWhen the date of a drawing is not given, the textbook computes interest for an average perWhich method of computing interest on drawings suits different amounts withdrawn at differA partner withdraws a fixed sum at the END of each quarter. The average period is: