Question :
Assertion (A): A firm can have a minimum of 2 with a maximum of 50 partners.
Reason (R): The limit of two partners flows from the definition in the Partnership Act, 1932. The maximum limit of partners is also prescribed in the Partnership Act, 1932.
Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
Option 2: Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
Option 3: Assertion (A) is true but Reason (R) is False
Option 4: Both Assertion (A) and Reason (R) are not correct
Correct Answer: Assertion (A) is true but Reason (R) is False
Solution : The partnership Act of 1932 specifies the minimum and maximum number of partners, while the Company Act of 2013 specifies the maximum. Section 464 of the Companies Act of 2013 empowers the central government to prescribe a maximum number of partners of up to 50. The central government then mandated a maximum of 50 partners per company rule (Miscellaneous Rules, 2014
Hence the correct answer is option 3 .
Question : Assertion (A): A partnership is a relationship between individuals who
Summarize the following paragraph:
Question : Assertion (A): If the partnership deed does not address the payment of interest, the interest on loans to partners is charged at a rate of 6% per year. Reason (R): In the absence of Partnership Deed, provisions of the Partnership Act, 1932 apply. Therefore, 6%
Question : Assertion (A): The firm's partners are Amit, Bharat, and Charu. The Partnership Agreement provides that Amit will be paid a salary of 60,000 per year. Bharat and Charu have also requested salaries of 60,000 each. Salaries for Bharat and Charu will be permitted.
Question : R and D are partners as per provisions of Indian Partnership Act 1932. On admission of a new partner M for 1/5 share, a revaluation account is prepared. M claims to have eqal share in revaluation profits. Choose the correct accounting treatment
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