English

State Whether the following Statement is True or False: Partnership firm has separate entity from its partners.

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Question

State Whether the following Statement is True or False:

Partnership firm has separate entity from its partners.

True or False
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Solution

The statement is false.

Explanation:

A partnership firm does not have a separate legal entity distinct from its partners under the Indian Partnership Act, 1932. The firm and its partners are considered closely connected, and the partners are personally liable for the firm's obligations.

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Chapter 1: Accounting for Partnership Firms - Fundamentals - OBJECTIVE TYPE QUESTIONS [Page 1.142]

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D. K. Goel Accountancy Part A Volume 1 and 2 [English] Class 12
Chapter 1 Accounting for Partnership Firms - Fundamentals
OBJECTIVE TYPE QUESTIONS | Q (B) 23. | Page 1.142
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