Accountancy

Grade 12

1.What is the maximum number of partners that a partnership firm can have? Name the act that
provides for the maximum number of partners in a partnership firm.

Ans. 50 partners. The Companies Act 2013

2.Neha a partner owns a building in which firm carries its business.the firm pays her 10,000 as rent of
building. To which account rent will be debited?

Ans. Rent a/c

3.Give four items that may appear in the credit side of partners current account.

Ans. Salary, Commission, Interest on Capital, Share of Profit.

4.List the items that appear in the debit side of a partners fixed capital account.

Ans. Drawings against Capital, Capital Balance.

5.Why is it that the capital account of a partner does not show a ‘debit balance ‘ in spite of regular and
consistent losses year after year.

Ans. The capital a/c will show credit balance despite losses as the accounts only changes if there is any
additional capital introduced, or there is capital withdrawal.