Question:
Assertion (A): In a partnership firm, the private assets of the partners can also be used to pay off the firm’s debts.
Reason (R): The liability of the partners for acts of the firm is limited.
Choose the correct option from the following:
Assertion (A): In a partnership firm, the private assets of the partners can also be used to pay off the firm’s debts.
Reason (R): The liability of the partners for acts of the firm is limited.
Choose the correct option from the following:
Reason (R): The liability of the partners for acts of the firm is limited.
Choose the correct option from the following:
Show Hint
In a partnership, partners have unlimited liability, unlike in a company where shareholders' liability is limited to their shareholding.
Updated On: Jan 13, 2026
- Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
- Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
- Assertion (A) is false, but Reason (R) is true.
- Assertion (A) is true, but Reason (R) is false.
Hide Solution
Verified By Collegedunia
The Correct Option is D
Solution and Explanation
In a partnership firm, the partners have unlimited liability, which means that in case the firm’s assets are insufficient to pay off its debts, the personal assets of the partners can be used to settle the liabilities. However, the statement in Reason (R) is incorrect as the liability of the partners in a partnership firm is not limited; it is unlimited.
Was this answer helpful?
0
0
Top Questions on Dissolution of Partnership Firms
- Madhavan, Chatterjee and Pillai were partners in a firm sharing profits and losses in the ratio of 2 : 1 : 2. On 31stMarch, 2024, their Balance Sheet was as follows :
Balance Sheet of Madhavan, Chatterjee and Pillai as at 31st March, 2024
On the above date, the firm was dissolved and the following transactions took place :Liabilities Amount (₹) Assets Amount (₹) Creditors 1,10,000 Cash at Bank 4,05,000 Outstanding Expenses 17,000 Stock 2,20,000 Mrs. Madhavan’s Loan 2,00,000 Debtors 95,000 Chatterjee’s Loan 1,70,000 Less: Provision for Doubtful Debts (5,000) Capitals: Madhavan – 2,00,000 Land and Building 1,82,000 Chatterjee – 1,00,000 Plant and Machinery 1,00,000 Pillai – 2,00,000 Total 9,97,000 Total 9,97,000
Debtors were taken over by the creditors in full settlement of their claim.
Madhavan agreed to pay Mrs. Madhavan’s loan.
50% of the stock was taken over by Chatterjee at 10% less than the book value. The remaining stock was sold at a profit of 20%.
Land and Building was taken over by Pillai for \(₹1,00,000\) and Plant and Machinery was sold as scrap for \(₹20,000\).
Realisation expenses \(₹17,000\) were paid by cheque.
Prepare Realisation Account.- CBSE CLASS XII - 2025
- Accountancy
- Dissolution of Partnership Firms
- On dissolution, Mohan's loan of ₹10,000 will be discharged by crediting:
- CBSE CLASS XII - 2025
- Accountancy
- Dissolution of Partnership Firms
- On the dissolution of the partnership firm of Raman, Hari and Suresh, realisation expenses \(₹17,000\) were paid by a debtor of \(₹75,000\) on behalf of the firm. The remaining amount was received from him along with interest of \(₹2,000\) for delayed payment. Realisation Account will be ___________ by ___________.
- CBSE CLASS XII - 2025
- Accountancy
- Dissolution of Partnership Firms
- On dissolution of a firm, there was an unrecorded asset of \(₹15,000\) which was taken over by a partner at \(₹13,000\). Partner’s capital account will be debited by :
- CBSE CLASS XII - 2025
- Accountancy
- Dissolution of Partnership Firms
- Madhur and Neeraj were partners in a firm sharing profits and losses in the ratio of 3 : 2. The Balance Sheet as at 31st March, 2024 was as follows: Balance Sheet of Madhur and Neeraj as at 31st March, 2024The firm was dissolved on the above date and the following transactions took place:
Liabilities Amount (₹) Assets Amount (₹) Capitals: Machinery 7,00,000 Madhur 9,00,000 Investments 4,00,000 Neeraj 8,00,000 Debtors 11,00,000 Creditors 6,00,000 Stock 2,00,000 Bills Payable 2,00,000 Cash at Bank 1,00,000 Total 25,00,000 Total 25,00,000
Machinery was taken over by creditors in full settlement of their account.
Investments were taken over by Neeraj at \u20b9 5,00,000.
One of the debtors of \u20b9 1,00,000 was untraceable. Remaining debtors were realised at 10% less.
Stock was taken over by Madhur at 50% discount.
Realisation expenses amounting to \u20b9 1,00,000 were paid by Madhur.
Prepare Realisation Account.- CBSE CLASS XII - 2025
- Accountancy
- Dissolution of Partnership Firms
View More Questions
Questions Asked in CBSE CLASS XII exam
A ladder of fixed length \( h \) is to be placed along the wall such that it is free to move along the height of the wall.
Based upon the above information, answer the following questions:(iii) (b) If the foot of the ladder, whose length is 5 m, is being pulled towards the wall such that the rate of decrease of distance \( y \) is \( 2 \, \text{m/s} \), then at what rate is the height on the wall \( x \) increasing when the foot of the ladder is 3 m away from the wall?
- CBSE CLASS XII - 2025
- Application of derivatives
- A meeting will be held only if all three members A, B and C are present. The probability that member A does not turn up is 0.10, member B does not turn up is 0.20 and member C does not turn up is 0.05. The probability of the meeting being cancelled is:
- CBSE CLASS XII - 2025
- Probability
- Vishesh, Manik and Amit were partners in the ratio 5 : 4 : 1. Amit retired on 31st March, 2024. Vishesh and Manik decided to share Amit’s share in the ratio 2 : 3. What will be the new profit sharing ratio between Vishesh and Manik?
- CBSE CLASS XII - 2025
- Retirement and Death of a Partner
- The electric field in a region is given by \( \vec{E} = 40x \hat{i} \, \text{N/C}. \) Find the amount of work done in taking a unit positive charge from a point (0, 3m) to the point (5m, 0).
- CBSE CLASS XII - 2025
- Electrostatics
- Consider the Linear Programming Problem, where the objective function \[ Z = x + 4y \] needs to be minimized subject to the following constraints: \[ 2x + y \geq 1000, \] \[ x + 2y \geq 800, \] \[ x \geq 0, \quad y \geq 0. \] Draw a neat graph of the feasible region and find the minimum value of $Z$.
- CBSE CLASS XII - 2025
- Linear Programming Problem
View More Questions