Assertion and Reason Type Questions of Class 12 Accountancy Fundamentals of Partnership

 Assertion and Reasoning Based Questions:

 In each of the questions given below, there are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the codes provided below:

A.  Both A and R are true and R is the correct explanation of A.

B.  Both A and R are true but R is not the correct explanation of A. 

C. A is true but R is false. 

D. A is false but R is true. 

Both A and R are false. 

 Fundamentals of Partnership 

1.  Assertion: Maximum number of partners in a partnership firm is 50. 

Reason: Maximum number of partners in a partnership firm is prescribed in Indian Partnership Act, 1932. 

2. Assertion: It is compulsory to have partnership deed in partnership business.

Reason: Partnership deed is a written agreement among partners which helps in settling disputes among them.

3. Assertion: Interest on partners' loan is to be paid whether the company is in profit or loss. 

Reason: Interest on partners' loan is an appropriation of profits. 

4. Assertion: Manager's commission is recorded on the debit side of Profit and Loss Account. 

Reason: Manager's commission is a charge against profits. 

5. Assertion : Rent paid to partner is credited to partners' capital account. 

Reason :Rent is payable to partner when he/she lets the firm use his/her personal property for business. 

6. Assertion : Salary allowed to a partner is shown in Profit and Loss Appropriation A/c. 

Reason : Salary is allowed to a partner only when there is a provision for the same in the partnership deed.  (CBSE 2022)

Try the above questions ⬆️ (Assertion and reason type) and share your answers. You can find out the correct answers in the comment section.