The maximum number of partners allowed in a partnership firm (as per Companies Act, 2013) is: MCQ with Answer and Explanation

The maximum number of partners allowed in a partnership firm (as per Companies Act, 2013) is:
A. 50
B. 100
C. 20
D. 10
Answer: Option A
Solution (By JKSSB Mock Tests)
As per Section 464 of Companies Act 2013, maximum number of partners can be 50, unless otherwise prescribed. The earlier limit of 20 for non-banking and 10 for banking has been raised to 50 for all firms.

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Practice More Accountancy and Book Keeping Questions

Question #1
The primary objective of a statutory financial audit is to:
A. Prepare the financial statements for management
B. Detect all frauds and errors
C. Guarantee the future viability of the company
D. Express an independent opinion on the financial statements

Correct Answer: Option D


Explanation:
The main objective is to form and express an independent opinion on whether the financial statements present a true and fair view.

Question #2
The 'Master File' under transfer pricing documentation is a part of:
A. Transfer pricing documentation (three-tiered structure)
B. Audit report
C. GST return
D. Income tax return

Correct Answer: Option A


Explanation:
Master file, local file, and CbCR form the three-tier transfer pricing documentation.

Question #3
If a business purchases goods worth ₹60,000 paying ₹20,000 cash and the balance on credit, the accounting equation will show:
A. Increase in assets ₹60,000, increase in liabilities ₹40,000, decrease in capital ₹0
B. Increase in assets ₹60,000, increase in liabilities ₹40,000, decrease in capital ₹20,000
C. Increase in assets ₹60,000, increase in liabilities ₹60,000
D. Increase in assets ₹40,000, increase in liabilities ₹40,000

Correct Answer: Option A


Explanation:
Assets increase by ₹60,000 (stock), cash decreases by ₹20,000, net assets increase ₹40,000; liabilities increase by ₹40,000 (creditors). Capital is unchanged. Equation: Assets = Liabilities + Capital, here +40,000 = +40,000 + 0.