Question : Assertion (A): The partner’s Private Property can be applied to pay the firm’s debt.
Reason (R): In a partnership firm, partners have unlimited liability.
Option 1: Assertion (A) and Reason (R) are correct but the reason (R) is not the correct explanation of Assertion (A)
Option 2: Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
Option 3: Only Assertion (A) is correct.
Option 4: Assertion (A) is not correct but the Reason (R) is correct.
Correct Answer: Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
Solution : Partners' are jointly and severally liable for the liabilities of the Partnership Firm and there is no limit on the liability hence their liability is unlimited. Partners' personal assets can be used to settle the debts/liabilies of the Firm.
Hence the correct answer is option 2.
Question : Assertion (A): Dissolution of the firm means the dissolution of the partnership between all the partners of the firm.
Reason (R): Dissolution of the firm means the closure of business and therefore means dissolution of
Question : Assertion (A): A loan from a relative of a partner is an external liability.
Reason (R): It is not transferred to the Realisation Account.
Question : Assertion (A): A partnership firm does not exist as a separate legal entity apart from the partners who comprise it.
Reason (R): The Central Government has established a limit of 100 partners in a firm.
Question : Assertions A:- Valuation of goodwill is necessary at the time of the firm’s reconstitution because gaining partners have to complete the sacrifice partners to gain profit share.
Reason R:- Goodwill is an
Question : Assertion (A): Balance at Banks is transferred to Realisation Account.
Reason (R): Balance at Bank is not to be realised but instead distributed in its present form.
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