Home › Tamil Nadu HSC (Class 12) › accountancy › Accounts of Partnership Firms - Fundamentals › According to the textbook, the maximum number of…
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_
Related questions
A firm follows the fixed capital method. Which combination correctly describes the closingWhich statement about a partner's loan to the firm is correct?Net profit is Rs 18,000 before interest on capital and drawings. Interest on capital totalProfit after interest on capital and salary is Rs 2,20,000. A partner is entitled to 10 peNet profit before any commission is Rs 1,10,000. One partner gets 10 per cent of profit beOpening capital is Rs 60,000 and a further Rs 10,000 is introduced on 1 April in a year enCapitals are Rs 4,00,000 and Rs 2,00,000 and profits are shared 3:2. Profit before interesA partner withdraws Rs 4,000 at the end of each quarter. Interest on drawings is 6 per cen