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State Whether the Following Statement Are True Or False. - Book Keeping and Accountancy

MCQ

State whether the following statement are True or False.

Partners’ current account always shows credit balance.

Options

  • True

  • False

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Solution

False .

Explanation: It is not mandatory that the current account of a partner will always show a credit balance. It might show a debit balance when the partner has withdrawn more than his or her share of profits from the firm. Hence, the given statement is incorrect.

Concept: The Indian Partnership Act 1932
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APPEARS IN

Micheal Vaz Accounts - Book Keeping and Accountancy HSC 12th Standard Maharashtra State Board
Chapter 1 Introduction to Partnership
Exercise | Q 12 | Page 14
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