English

State the ‘liability of a partner’ in a partnership firm. - Accounts

Advertisements
Advertisements

Question

State the ‘liability of a partner’ in a partnership firm.

Short Answer
Advertisements

Solution

In a partnership firm, the liability of a partner is unlimited and several, meaning that the personal assets of the partner can be used to cover the firm’s debts. Each partner is personally liable for all of the firm’s obligations, and they may be required to contribute more than their share of capital if the firm’s assets are insufficient to pay off its debts.

shaalaa.com
  Is there an error in this question or solution?
Chapter 1: Accounting for Partnership Firms - Fundamentals - SHORT ANSWER QUESTIONS [Page 1.126]

APPEARS IN

D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 1 Accounting for Partnership Firms - Fundamentals
SHORT ANSWER QUESTIONS | Q 1. | Page 1.126
Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×