{"id":38690,"date":"2022-12-05T18:44:04","date_gmt":"2022-12-05T13:14:04","guid":{"rendered":"https:\/\/tsboardsolutions.com\/?p=38690"},"modified":"2022-12-05T18:44:04","modified_gmt":"2022-12-05T13:14:04","slug":"ts-inter-2nd-year-accountancy-study-material-chapter-4","status":"publish","type":"post","link":"https:\/\/tsboardsolutions.com\/ts-inter-2nd-year-accountancy-study-material-chapter-4\/","title":{"rendered":"TS Inter 2nd Year Accountancy Study Material Chapter 4 Partnership Accounts"},"content":{"rendered":"

Telangana TSBIE TS Inter 2nd Year Accountancy\u00a0Study Material<\/a> 4th Lesson Partnership Accounts Textbook Questions and Answers.<\/p>\n

TS Inter 2nd Year Accountancy Study Material 4th Lesson Partnership Accounts<\/h2>\n

Very Short Answer Questions<\/span><\/p>\n

Question 1.
\nWhat is partnership?
\nAnswer:<\/p>\n

    \n
  1. According to section 4, the Partnership Act 1932, partnership means “The relationship between persons who have agreed to share profits of the business carried on by all or any one of them acting for all”.<\/li>\n
  2. The persons who have entered into partnership business are called individually as “partners” and collectively as “a firm” and the name under which their business is carried on is called the name of the firm.<\/li>\n<\/ol>\n

    Question 2.
    \nWhat is a partnership deed?
    \nAnswer:<\/p>\n

      \n
    1. It is a document that defines the rights and liabilities of partners of the firm besides containing other matters pertaining to the conduct and management of the firm.<\/li>\n
    2. Partnership deed is signed by all the partners.<\/li>\n<\/ol>\n

      \"TS<\/p>\n

      Question 3.
      \nState the methods of preparing partners’ capital accounts.
      \nAnswer:
      \nThere are methods of preparing partners’ capital accounts.
      \nThey are: A) Fixed capital method; and B) Fluctuating capital method.<\/p>\n

      Question 4.
      \nWhat is the fixed capital method?
      \nAnswer:<\/p>\n

        \n
      1. Under fixed capital method, we prepare two accounts partner capital account and partners current account.<\/li>\n
      2. All the adjustments such as drawings, interest on capital, salary or commission, share of profits will be recorded in a partners current account, and the partners capital account is remains unchanged. Because of this, it is called fixed capital method.<\/li>\n<\/ol>\n

        Question 5.
        \nWhat is fluctuating capital method?
        \nAnswer:<\/p>\n

          \n
        1. Under this method, all transactions relating to a partner such as capital contributed by partner, interest on capital, drawings, interest on drawings, salary, commission to partner, share of profit or loss are recorded in capital account only.<\/li>\n
        2. Because of this, the balance in capital account keeps on changing every year. Hence, it is called fluctuating capital method.<\/li>\n<\/ol>\n

          Question 6.
          \nWhat is partnership? State its features.
          \nAnswer: Definition: According to section 4, Partnership Act 1932, partnership means “The relationship between persons who have agreed to share profits of the business carried on by all or any one of them acting for all”.
          \nFeatures:<\/p>\n