English

State Whether the following Statement is True or False: The liability of each partner is limited to the capital contributed by him.

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Question

State Whether the following Statement is True or False:

The liability of each partner is limited to the capital contributed by him.

True or False
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Solution

The statement is false.

Explanation:

In a partnership firm, the liability of each partner is unlimited. A partner is liable for the debts and obligations of the firm beyond the amount of capital contributed by him.

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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) 19. | Page 1.142
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