Question:
Assertion (A): In partnership firm, the private assets of the partners can also be used to pay off the firm's debts.
Reason (R): The liability of the partners for acts of the firm is limited.
Choose the correct option from the following:
Assertion (A): In partnership firm, the private assets of the partners can also be used to pay off the firm's debts.
Reason (R): The liability of the partners for acts of the firm is limited.
Choose the correct option from the following:
Show Hint
Understand the fundamental difference between limited and unlimited liability in partnership law. Limited liability applies to LLPs (Limited Liability Partnerships) but not to regular partnerships.
Updated On: Jan 13, 2026
- Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
- Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
- Assertion (A) is false, but Reason (R) is true.
- Assertion (A) is true, but Reason (R) is false.
Show Solution
Verified By Collegedunia
The Correct Option is D
Solution and Explanation
In a partnership firm, the partners have unlimited liability, which means their private assets can be used to pay off the firm's debts if the firm's assets are insufficient. However, the statement in Reason (R) is false because the liability of the partners is not limited but unlimited.
Was this answer helpful?
0
0
Top CBSE CLASS XII Accountancy Questions
From the following Balance Sheet of Hira Ltd. as at 31st March, 2023, prepare Comparative Balance Sheet:
- On 1st May, 2023, Amrit Ltd. issued 10,000, 10% debentures of ₹100 each at a premium of 10%, redeemable at a premium of 10%. Loss on issue of debentures will be:
- Gupta and Sharma are partners in a firm sharing profit in the ratio of 4:1. They admitted Preeti as a new partner for \( \frac{1}{4} \) share in the profits, which she acquired wholly from Gupta. The new profit sharing ratio of Gupta, Sharma, and Preeti will be:
- On the dissolution of a partnership firm, there were debtors of ₹34,000. Debtors of ₹1,000 became bad, and 60% was realized from the remaining debtors. Which account will be debited and by how much amount on the realization from debtors?
- If vendors are issued fully paid shares of ₹1,25,000 in purchase consideration of net assets of ₹1,50,000, the balance of ₹25,000 will be credited to:
View More Questions
Top CBSE CLASS XII Reconstitution of Partnership Questions
- Gupta and Sharma are partners in a firm sharing profit in the ratio of 4:1. They admitted Preeti as a new partner for \( \frac{1}{4} \) share in the profits, which she acquired wholly from Gupta. The new profit sharing ratio of Gupta, Sharma, and Preeti will be:
- Ravi, Vani, and Toni were equal partners in a firm. After the retirement of Vani, the capital balances of Ravi and Toni were ₹1,56,000 and ₹1,08,000 respectively. The new capital of the firm was determined at ₹2,80,000. It was decided that the capital will be in proportion to the profit-sharing ratio of the remaining partners. Toni will bring ...... for the deficiency of his new capital.
- Vanya and Aanya were partners in a firm sharing profits and losses in the ratio of 3:2. Their capitals were \rupee 5,00,000 and \rupee 1,00,000 respectively. Vanya was entitled to interest on capital @ 8\% p.a., and Aanya was entitled to salary @ \rupee 5,000 per month. The net profit before any appropriation was \rupee 1,75,000. Vanya’s share in divisible profit will be:
- Riya, Rita and Renu were partners in a firm. On 31st March, 2023 Renu retired. The amount payable to Renu \rupee 2,17,000 was transferred to her loan account. Renu agreed to receive interest on this amount as per the provisions of Partnership Act, 1932. The rate at which interest would be paid to Renu is:
- Which one of the following items is not dealt through Profit and Loss Appropriation Account?
View More Questions
Top CBSE CLASS XII Questions
- 2, b, c are in A.P. and the range of determinant $\begin{vmatrix}1&1&1\\ 2&b&c\\ 4&b^{2}&c^{2}\end{vmatrix}$ is [2, 16]. Then find range of c is
- A boy of mass 50 kg is standing at one end of a, boat of length 9 m and mass 400 kg. He runs to the other, end. The distance through which the centre of mass of the boat boy system moves is
- A capillary tube of radius r is dipped inside a large vessel of water. The mass of water raised above water level is M. If the radius of capillary is doubled, the mass of water inside capillary will be
- A circular disc is rotating about its own axis. An external opposing torque 0.02 Nm is applied on the disc by which it comes rest in 5 seconds. The initial angular momentum of disc is
- A circular disc is rotating about its own axis at uniform angular velocity \(\omega.\) The disc is subjected to uniform angular retardation by which its angular velocity is decreased to \(\frac {\omega}{2}\) during 120 rotations. The number of rotations further made by it before coming to rest is
View More Questions