Podcast
Questions and Answers
What happens to the assets contributed by partners in a partnership?
What happens to the assets contributed by partners in a partnership?
- They become partnership property, jointly owned by all parties (correct)
- They are taxable entities
- They are sold and divided among the partners
- They remain the exclusive property of the partner who contributed them
According to Partnership Act 1908, what do partners share equally in?
According to Partnership Act 1908, what do partners share equally in?
- Capital and profits (correct)
- Assets and liabilities
- Debts and losses
- Interest on capital
In a partnership, what happens if there is a Partnership Deed?
In a partnership, what happens if there is a Partnership Deed?
- It is no longer considered a partnership
- It becomes a taxable entity
- It overrides Section 27 of the Partnership Act 1908 (correct)
- It exempts partners from paying taxes
What type of entity are partnerships in terms of taxation?
What type of entity are partnerships in terms of taxation?
What must partners do if they want to change the nature of their partnership?
What must partners do if they want to change the nature of their partnership?
What method of settling accounts is typically used when changes occur in a partnership?
What method of settling accounts is typically used when changes occur in a partnership?
In a partnership using the Fixed Capital Method, what is the purpose of the Current Account?
In a partnership using the Fixed Capital Method, what is the purpose of the Current Account?
What is the main function of the Drawings Account in a partnership?
What is the main function of the Drawings Account in a partnership?
Which accounts are credited for liabilities assumed by a partnership?
Which accounts are credited for liabilities assumed by a partnership?
What type of transactions are typically recorded in the Capital Accounts of partners?
What type of transactions are typically recorded in the Capital Accounts of partners?
Which financial statement would show the revenues and expenses of a partnership?
Which financial statement would show the revenues and expenses of a partnership?
When are assets withdrawn by partners for personal use typically recorded in a partnership's accounts?
When are assets withdrawn by partners for personal use typically recorded in a partnership's accounts?
What is the meaning of a partnership according to the Partnership Act 1908?
What is the meaning of a partnership according to the Partnership Act 1908?
Why is the receipt of a share of profits considered prima facie evidence of a partnership?
Why is the receipt of a share of profits considered prima facie evidence of a partnership?
What is the main difference between a partnership being an accounting entity and a legal entity?
What is the main difference between a partnership being an accounting entity and a legal entity?
Why does every partner in a partnership have unlimited liability?
Why does every partner in a partnership have unlimited liability?
What leads to the dissolution of a partnership based on the text?
What leads to the dissolution of a partnership based on the text?
