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Following are essential elements of a partnership firm except: - Accounts

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Question

Following are essential elements of a partnership firm except:

Options

  • At least two persons.

  • There is an agreement between all partners. 

  • Equal share of profits and losses.

  • Partnership agreement is for some business.

MCQ
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Solution

Equal share of profits and losses.

Explanation:

A partnership firm is an agreement between two or more people to run a business, but they don’t have to share profits or losses equally unless the partnership deed specifies otherwise or if there isn’t one.

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Chapter 1: Accounting for Partnership Firms - Fundamentals - OBJECTIVE TYPE QUESTIONS [Page 1.172]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 1 Accounting for Partnership Firms - Fundamentals
OBJECTIVE TYPE QUESTIONS | Q 1. | Page 1.172
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