When a partnership liquidates its business, the sale of the non cash assets is called
Insolvency
Realisation
Recognition
Disposition
A partnership is formed by
Agreement
Relationship among persons
The direction of government
None of these
It is true that a partnership
Is dissolved only by the withdrawal of a partner
Is dissolved upon the acceptance of a new partner.
Dissolution means the business must liquidate
Has unlimited life
The partnership agreement would normally include each of the following except the
Date of the partnership commencement
Principal location of the firm
Surviving family members in the event of a partner's death
All of these should be included
In the liquidation of a partnership, any gain or loss on the realisation of non cash assets should be allocated
First to creditors and remainder to partners
To the partners on the basis of their capital balances
To the partners on the basis of their profit/loss sharing ratios
Only after all creditors have been paid
The partnership form of business is
Restricted to law and medical practices.
Restricted to firms having fewer than 10 partners.
Not restricted to any particular type of business.
Most often used by relatively large organisations
The individual assets invested by a partner in a partnership
Revert back to that partner if the partnership liquidates
Determine that partner's share of profit or loss for the year
Are jointly owned by all partners
Determine the scope of authority of that partner.
A partner who does not take part in the working of the firm is called
Sleeping partner
Nominal partner
Active partner
Partner by Estoppel
The partners liability in India is
Limited
Limited to an extend
Unlimited
Which of these would not be recorded in the entry for the formation of a partnership?
Accumulated Depreciation
Allowance for impairment
Accounts receivable
All would be recorded
