Under which Section & Act, the Central Government is empowered to prescribe a maximum number of partners in a partnership firm? Option 1: Section 464 of the Companies Act 1932 Option 2: Section 464 of the Companies Act 2013 Option 3: Section 4 of the Companies Act 2013 Option 4: Section 4 of the Companies Act 1932

Answer: Section 464 of the Companies Act 2013. Solution: Section 464 of the Companies Act 2013 empowers the Central Government to prescribe the maximum number of partners in a partnership firm. This provision was introduced to regulate the size of partnerships and prevent them from functioning like companies without proper regulatory oversight. Prior to this, partnerships could have unlimited members, which created regulatory challenges. Under this section, the Central Government has prescribed that: - Banking partnerships can have a maximum of 10 partners - Other partnerships can have a maximum of 50 partners If a partnership exceeds the prescribed limit, it must register itself as a company under the Companies Act 2013. This ensures that larger business entities are subject to appropriate corporate governance and disclosure requirements. The Companies Act 1932 is outdated and has been replaced by the Companies Act 2013. Section 4 of the Companies Act 2013 deals with the memorandum of association of companies, not the maximum number of partners in partnerships.

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Under which Section & Act, the Central Government is empowered to prescribe a maximum number of partners in a partnership firm?

Section 464 of the Companies Act 1932

Section 464 of the Companies Act 2013

Section 4 of the Companies Act 2013

Section 4 of the Companies Act 1932

✅ Correct Option: 2

Section 464 of the Companies Act 2013 empowers the Central Government to prescribe the maximum number of partners in a partnership firm.

This provision was introduced to regulate the size of partnerships and prevent them from functioning like companies without proper regulatory oversight. Prior to this, partnerships could have unlimited members, which created regulatory challenges.

Under this section, the Central Government has prescribed that:

Banking partnerships can have a maximum of 10 partners
Other partnerships can have a maximum of 50 partners

If a partnership exceeds the prescribed limit, it must register itself as a company under the Companies Act 2013. This ensures that larger business entities are subject to appropriate corporate governance and disclosure requirements.

The Companies Act 1932 is outdated and has been replaced by the Companies Act 2013. Section 4 of the Companies Act 2013 deals with the memorandum of association of companies, not the maximum number of partners in partnerships.

2025: 31 May Shift 1

Match List-I with List-II

List-I	List-II
Interest on Drawings	Time (Month)
(A) When the amount is withdrawn at the beginning of each month.	(I) 6 months
(B) When the amount is withdrawn at the end of each month.	(II) 6.5 months.
(C) When the amount is withdrawn at the middle of each month.	(III) 5.5 months.
(D) When the amount is withdrawn at the end of each quarter.	(IV) 4.5 months.

Choose the correct answer from the options given below:

2025: 22 May Shift 1

Yadu, Madhu and Vidu are partners, sharing profit and losses in the ratio of 2:2:1. Their fixed capitals on April 01, 2018 were:

Yadu Rs. 5,00,000, Madhu Rs. 4,00,000 and Vidu is 3,50,000.

As per the partnership deed, partners are entitled to interest on capital @5% p.a. and Yadu has to be paid a salary of Rs. 2000 per month. The net loss of the firm as per profit and loss account for the year ending March 31, 2019, amounted to Rs. 75,000. On the basis of the profit and loss appropriation account, Partners' distribution of loss would be:

2025: 15 May Shift 1

What is the amount of T's deficiency in profits?

2026: 20 May Shift 1

Select the essential features of partnership from the following:

(A) Partnership is the result of an agreement between partners.

(B) Co-ownership of a property between people amounts to partnership.

(D) Each partner carrying on the business is the principal as well as the agent for all the other partners.

Choose the correct answer from the options given below:

2025: 3 June Shift 2

Which of the following account / statement is prepared to distribute the profit or loss among partners

2025: 24 May Shift 1

Which of the following item is not shown in the Profit and Loss Appropriation Account?

Under which Section & Act, the Central Government is empowered to prescribe a maximum number of partners in a partnership firm?

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