Partnership

Accounting

Easy

common

Which of the following is NOT a feature of partnership?

Two or more persons

Disagreement

Mutual agency

Sharing of profit

✅ Correct Option: 2

A partnership firm is formed based on an agreement between partners, not disagreement. Let me clarify the actual features of partnership:

Features of Partnership:

Two or more persons → Minimum 2 persons are required to form a partnership (maximum 50 as per Companies Act, 2013)

Agreement → Partnership arises from a contract between partners, which can be written, oral or implied. There must be mutual understanding and consensus.

Mutual agency → Each partner is both an agent and principal. Every partner can bind the firm and other partners through their actions in the ordinary course of business.

Sharing of profits → Partners must agree to share profits (and losses) of the business in an agreed ratio.

Disagreement is contrary to the very foundation of partnership. A partnership requires consent, mutual understanding, and contractual agreement between partners. Without agreement, no partnership can exist or function effectively.

The presence of continuous disagreement would actually lead to dissolution of partnership rather than being a feature of it.

Correct Answer: Option 2 (Disagreement)

2026: 31 May Shift 1

Which of the following provisions of Partnership Act is not relevant for accounting?

2025: 15 May Shift 1

What is the amount of A's deficiency of annual fee?

2026: 29 May Shift 2

Varun, Vansh and Vinay are partners sharing profits in the ratio of 5:3:2. They decided to share future profits in the ratio of 2:3:5. What will be the accounting treatment of Workmen Compensation Reserve existing in the balance sheet on that date when further information is not available.

2026: 29 May Shift 1

The Profit or Loss on revaluation of accounts is transferred to:

2026: 19 May Shift 1

Which of the following is not a feature of partnership as per Partnership Act 1932 ?

2026: 13 May Shift 2

Out of the following statements, which are correct?

(A) In the absence of partnership deed, no partner is entitled to get salary or other remuneration.

(B) If a partner withdraws fixed amount at the end of each month for the whole year, then interest on drawings will be calculated for an average period of 5.5 months.

(C) If the partnership deed provides for interest on capital but the firm does not have sufficient profit, then the interest on capital will be paid to the extent of availble profit in the ratio of interest on capital.

(D) If a partner is admitted into a firm with a guarantee of certain profit, then the deficiency of profit (if any) shall be borne by the old partners in their capital ratio.

Which of the following is NOT a feature of partnership?

Solution

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