Which one of the following statements is True' in partnership?
Under the super-profit method, a firm earning only normal profit has zero goodwill.
Under the super-profit method, normal profit leaves no super profit and therefore no goodwill under that method. This does not mean a normally profitable firm has no goodwill under every valuation method. The other partnership statements conflict with the default rules on remuneration, mutual agency and interest on advances.
Important Questions from Indian Partnership Act, 1932
- As per Section 206 AA in Income tax Act, 1961, if PAN (Permanent Account Number) is not provided, the rate of TDS would be __________.
- Which one of the following is not within the scope of Implied Authority of a partner?
- Which one of the following is incorrect ?
Under the Partnership Act, a minor who has been admitted to partnership when attains majority should adhere to the following : - Match List - I with List - II and select the correct answer using the code given below :
List - I List - II (a) Mutual Rights and Liabilities of Partners (i) Section 34 of Partnership Act (b) Dissolution of Partnership (ii) Section 13 of Partnership Act (c) Retirement of a Partner (iii) Section 39 of Partnership Act (d) Insolvency of a Partner (iv) Section 32 of Partnership Act
Code : (a) (b) (c) (d) Under the Indian Partnership Act, 1932, which statements are false?
A. Partners have no duty to carry on business to the greatest common advantage.
B. In the absence of a contrary contract, interest on subscribed capital is payable even when there are no profits.
C. If the business continues using an outgoing partner’s share without final settlement, and no contrary contract applies, that partner may opt for attributable subsequent profits or 6% annual interest on the share, subject to section 37.
D. A majority may expel a partner without any contractual power and without acting in good faith.
