Top 10 question| most important for exam | Profit and Loss Appropriation Account| Rupesh Kumar Roy |

Profit and Loss Appropriation Account
Short question with the answer
1. What do mean by Partnership ?
Ans. The Indian Partnership Act defines partnership as ―the relationship between persons
who have agreed to share the profit of a business carried on by all or any of them acting for
all.‖
2. Who is partners ?
Ans. The partners are the persons who have agreed to do business and share its profits and
losses.
3. What do you mean by the firm ?
Ans. The partners carrying on the business are collectively known as firm.
4. What is partnership deed ?
Ans. Partnership comes into existence by an agreement which may be written or oral. The
agreement in writing among partners is known as Partnership Deed.
5. Where a general partner has been required ?
Ans. Every limited partnership must have at least one general partner.
6. Who is active or actual partner ?
Ans. Active or actual partner is those who take actively part in the conduct of the business.
7. Who is sleeping partner ?
Ans. Sleeping or dormant partner who does not actively takes part in the conduct of the
partnership business.
8. Who is sub-partner ?
Ans. When a partner agrees to share his of profits in a partnership firm with an outsider, such
an outsider is called a sub-partner. Such a sub-partner does not hold any rights against the
firm or liable for the debts of the firm.
9. What do you mean by Minor Partner ?
Ans. A partner, who has not attained the age of maturity, is called a minor partner.
Note : A minor partner can be admitted only into the benefits of the partnership but is not
personally liable, like other partners, for any debts of the firm.
10. Give two method of maintain partner’s capital account ?
Ans. The partner’s capital account can be maintained as :
a. Fixed Capital Method; and
b. Fluctuating Capital Method.