Question:
Which of the following is NOT a feature of partnership?
Which of the following is NOT a feature of partnership?
Show Hint
For accounting purposes, a firm is treated as a separate entity from partners (Business Entity Concept), but legally it is not. Always distinguish between the accounting view and the legal view.
Updated On: May 30, 2026
- Mutual agency
- Separate legal entity
- Profit sharing
- Agreement between persons
Show Solution
Verified By Collegedunia
The Correct Option is B
Solution and Explanation
Step 1: Understanding the Question:
A partnership firm has specific characteristics defined by the Indian Partnership Act, 1932. We need to find the one that does not apply.
Step 2: Detailed Explanation:
1. Mutual Agency: Every partner is an agent of the firm and other partners. This is a core feature.
2. Profit Sharing: Partners must agree to share profits of the business.
3. Agreement: A partnership arises from a contract (written or oral), not from status.
4. Separate Legal Entity: A partnership firm is NOT a separate legal entity from its partners. Partners have unlimited liability, and the firm's existence is tied to them. In contrast, a company is a separate legal entity.
Step 3: Final Answer:
"Separate legal entity" is not a feature of a partnership firm.
Was this answer helpful?
0
0
Top CUET Accountancy Questions
- As per Receipts and Payments Account for the year ended on March 31, 2020, subscriptions received were ₹ 2,50,000 subscriptions outstanding on 1-04-2019 ₹ 50,000, Subscriptions received in advance as on 31-3-2020 are ₹ 30.000. Subscriptions for the year 2019-20 will be:
- At the time of admission of a new partner general reserve appearing in the old balance sheet is transferred to_______
- Match List-I with List-IIChoose the correct answer from the options given below:
LIST I: Basis of Debenture LIST II: Types of Debenture (A) Tenure (I) Zero coupon rate (B) Interest rate point of view (II) Irreedemable (C) Security (III) Registration (D) Bearer (IV) Secured - On retirement of a partner, the retiring partner's capital account will be credited with ______
- Journal entry to be passed for unrecorded assets for preparing Revaluation A/C at the time of Retirement of a partner will be______
View More Questions
Top CUET Partnership Questions
- At the time of admission of a new partner general reserve appearing in the old balance sheet is transferred to_______
- On retirement of a partner, the retiring partner's capital account will be credited with ______
- The capital accounts of partners will always show a ________ balance under fixed capital account method
- Aman and Mohan, partners of a firm decided to dissolve the business on 31-03-22. The firm decided to pay realisation expenses of ₹ 1,000 on behalf of Mohan. ₹1000 will be debited to
- Identify the correct sequence of current assets in company's Balance sheet?
A. Bills Receivables
B. Cash & cash equivalents
C. Short term loans & advances
D. Inventories
E. Current investments
Choose the correct answer from the options given below:
View More Questions
Top CUET Questions
Select the statements that are CORRECT regarding patterns of biodiversity.
(A) Species diversity increases as we move away from the equator towards the poles(B) The tropical Amazon rain forest in South America has the greatest biodiversity on earth.(C) There is more solar energy available in the temperate region than tropics.(D) Tropical environments are less seasonal relatively more constant and predictableWhich of the following hormone is not produced by placenta ?
- Individuals with karyotype of 44+XXY having overall masculine development with few feminine development like Gynaecomastia has _______ chromosomal disorder.
- Match List - I with List - II.Choose the correct answer from the options given below :
List - I
List - II
A Streptokinase I Blood-Cholestrol lowering agents B Cyclosporin II Clot Buster C Statins III Propionibacterium sharmanii D Swiss Cheese IV Immuno suppressive agent Which of the following option determines percolation and water holding capacity of soils ?
View More Questions