CA Foundation · Accounting & Mercantile Law

Indian Partnership Act 1932: Rights, Duties and Dissolution

10 practice questions, each with the answer and an explanation.

Practise Indian Partnership Act 1932: Rights, Duties and Dissolution now

Random questions from this topic, one at a time. You see the answer and the explanation straight after each one.

All 10 questions

  1. In the absence of any agreement among partners, what rate of interest is payable on an advance or loan given by a partner to the partnership firm?
  2. A, B, and C are partners sharing profits in the ratio of 5:3:2. B retires, and his share is acquired equally by A and C. What is the new profit-sharing ratio between A and C?
  3. Under the rule established in Garner v. Murray, how is the deficiency on the capital account of an insolvent partner borne by the solvent partners?
  4. Under Section 48 of the Indian Partnership Act 1932, in what order of priority must the assets of the firm be applied upon dissolution?
  5. A firm earns an average net profit of ₹80,000. Capital employed in the business is ₹5,00,000, and normal rate of return is 10%. Value goodwill at 3 years purchase of super profit.
  6. What is the legal effect of the registration of a partnership firm under the Indian Partnership Act 1932?
  7. A and B are partners sharing profits in the ratio 3:2. They admit C for a 1/5th share. What is the sacrificing ratio of A and B if no other condition is given?
  8. Upon dissolution of a partnership, unrecorded assets realized are credited to which of the following accounts?
  9. Can a minor be admitted as a full partner into an existing partnership firm under Section 30 of the Partnership Act?
  10. Where a partnership at will is to be dissolved, what is the statutory requirement under Section 43 of the Act?

Keep practising

More CA Foundation topics

All CA Foundation practice →

Ready for the full CA Foundation test?

Take a mock testCA Foundation hub
Indian Partnership Act 1932: Rights, Duties and Dissolution | GetMyMockTest