Why it is considered desirable to | Class 12 Accountancy Chapter Accounting for Partnership : Basic Concepts, Accounting for Partnership : Basic Concepts NCERT Solutions

Welcome to the NCERT Solutions for Class 12 Accountancy - Chapter Accounting for Partnership : Basic Concepts. This page offers a step-by-step solution to the specific question from Exercise 4, Question 2: . With detailed answers and explanations for each chapter, students can strengthen their understanding and prepare confidently for exams. Ideal for CBSE and other board students, this resource will simplify your study experience.

Question 2:

Why it is considered desirable to make the partnership agreement in writing.

Answer:

Partnership firm is an association between persons to carry out a business. The partners make an agreement to carry out the business which is known as partnership agreement. It states the agreed share of the profits of the business which might be carried out by all or by anyone of them acting on behalf of others.

The agreement may be oral or in writing. Under the Partnership Act, 1932 it is not at all binding to have a partnership agreement in writing. However in order to avoid misunderstandings and dispute among the partners it is recommended to have the agreement in writing. One more reason to have it in writing is, it helps in settling disputes as written agreement is often taken as a reference point. A written deed duly signed and registered under Partnership Act is considered as evidence by the court.

Other Questions of Chapter Accounting for Partnership : Basic Concepts

Illustrate how interest on drawings will be calculated under various situations.

Give two circumstances under which the fixed capitals of partners may change.

List the items which may be debited or credited in capital accounts of the partners when:

(i) Capitals are fixed.
(ii) Capital are fluctuating.

Rani and Suman are in partnership with fixed capitals of Rs, 80,000 and Rs.60,000, respectively. During the year 2015-16, Rani withdrew Rs. 10,000 from her capital and Suman Rs. 15,000. Profits before charging interest on capital was Rs. 50,000. Rani and Suman shared profits in the ratio of 3:2. Calculate the amounts of interest on their capitals @ 12% p.a. for the year ended March 31, 2016.

If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?

Mohan and Shyam are partners in a firm. State whether the claim is valid if the partnership agreement is silent in the following matters:

(i) Mohan is an active partner. He wants a salary of Rs. 10,000 per year;
(ii) Shyam had advanced a loan to the firm. He claims interest @ 10% per annum;
(iii) Mohan has contributed Rs. 20,000 and Shyam Rs. 50,000 as capital. Mohan wants equal share in profits.
(iv) Shyam wants interest on capital to be credited @ 6% per annum.

State whether the following statements are true or false:

(i) Valid partnership can be formulated even without a written agreement between the partners;
(ii) Each partner carrying on the business is the principal as well as the agent for all the other partners;
(iii) Maximum number of partners can be 50;
(iv) Methods of settlement of dispute among the partners can’t be part of the partnership deed;
(v) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner;
(vi) Interest on partner’s loan is to be given @ 12% p.a. if the deed is silent about the rate.

Discuss the main provisions of the Indian Partnership Act 1932 that are relevant to partnership accounts if there is no partnership deed.

Explain why it is considered better to make a partnership agreement in writing.

Define Partnership Deed.

Popular questions of class 12 Accountancy

What is Capital Fund? How is it calculated?

What is sacrificing ratio? Why is it calculated?

Why there is need for the revaluation of assets and liabilities on the admission of a partner?

What is subscription? How is it calculated?

If some goodwill already exists in the books and the new partner brings in his share of goodwill in cash, how will you deal with existing amount of goodwill?

On what occasions sacrificing ratio is used?

Identify various matters that need adjustments at the time of admission of a new partner.

What steps are taken to prepare Income and Expenditure Account from a Receipt and Payment Account?

What are the different ways in which a partner can retire from the firm?

Why it is necessary to ascertain new profit sharing ratio even for old partners when a new partner is admitted?

Recently Viewed Questions of Class 12 Accountancy

What is Capital Fund? How is it calculated?

Reproduce the format of Realisation Account.

What are the different ways in which a partner can retire from the firm?

State the order of settlement of accounts on dissolution.

How deficiency of crditors is paid off at the time of dissolution of firm.

Explain the process dissolution of partnership firm?

Distinguish between firm’s debts and partner’s private debts.

State the difference between dissolution of partnership and dissolution of partnership firm.

Write the various matters that need adjustments at the time of retirement of partner/partners.

On dissolution, how will you deal with partner’s loan if it appears on the
(a) assets side of the balance sheet, (b) liabilities side of balance sheet.

Study Tips for Answering NCERT Questions:

NCERT questions are designed to test your understanding of the concepts and theories discussed in the chapter. Here are some tips to help you answer NCERT questions effectively:

Read the question carefully and focus on the core concept being asked.
Reference examples and data from the chapter when answering questions about Accounting for Partnership : Basic Concepts.
Review previous year question papers to get an idea of how such questions may be framed in exams.
Practice answering questions within the time limit to improve your speed and accuracy.
Discuss your answers with your teachers or peers to get feedback and improve your understanding.

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