Podcast
Questions and Answers
Which type of account is used to record the share of profits or losses by the partner in a partnership firm?
Which type of account is used to record the share of profits or losses by the partner in a partnership firm?
What is the primary purpose of preparing a partnership account?
What is the primary purpose of preparing a partnership account?
In partnership accounting, what does the term 'guarantee against loss' refer to?
In partnership accounting, what does the term 'guarantee against loss' refer to?
Study Notes
Partnership Accounts
- A Current Account is used to record the share of profits or losses by the partner in a partnership firm.
Purpose of Partnership Account
- The primary purpose of preparing a partnership account is to ascertain the profit sharing ratio among partners and to determine the balance of capital accounts.
Guarantee Against Loss
- In partnership accounting, the term 'guarantee against loss' refers to a partner's promise to compensate the other partners for any loss that may occur due to their actions or decisions.
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Description
Test your knowledge of partnership accounts with this quiz for class 12th students. Explore concepts such as recording profits and losses, the primary purpose of partnership accounts, and understanding the term 'guarantee against loss' in partnership accounting.
